Zurich targets $100 carbon price by 2030

The company aims for 75% of its Managed Procurement Spend to come from suppliers.

Zurich Insurance is intensifying its efforts to decarbonise both its business operations and supply chain as part of its strategy to adapt to evolving customer needs and external developments in science, technology, regulations, and the economy.

By 2030, Zurich aims to further reduce emissions and offset any remaining operational emissions by purchasing high-quality carbon removal credits, prioritizing long-lasting solutions such as biochar and direct air capture. 

The company has already made significant strides, including sourcing 100% renewable electricity. 

Zurich's three key areas for further emission reductions include transitioning its fleet to 100% electric vehicles (EVs), encouraging employees to use EVs or public transport for their commute, and limiting air travel while enhancing digital collaboration to replace unnecessary flights.

Zurich also plans to implement a progressive internal carbon pricing model, targeting a carbon price exceeding $100 per ton of CO2e by 2030. 

The current internal carbon price has contributed to a $3m internal carbon fund aimed at supporting emissions reduction initiatives within Zurich's operations, employee activities, and supply chain. 

This fund is accessible to Zurich employees seeking support for carbon reduction projects. Cost savings from reduced emissions have already exceeded the company's current investments in sustainability.

In addition to its operational goals, Zurich is focusing on its supply chain, requiring suppliers to establish emissions reduction targets. 

The company aims for 75% of its Managed Procurement Spend, approximately $2b annually, to come from suppliers with science-based emissions reduction targets by 2025. By 2030, these suppliers are expected to commit to achieving net-zero emissions.

Zurich continues to expand its renewables insurance market share, enhance natural catastrophe modeling, and deepen expertise in construction, engineering, and motor insurance, where it is optimizing its claims network to accommodate new technology.

On the investment front, Zurich maintains a diversified portfolio across asset classes and geographies, ensuring stability throughout the macroeconomic cycle. The company is also committed to decarbonising its investment portfolio, with a goal to achieve net-zero by 2050.