Zurich cuts over half of air emissions through ESG initiatives

Sustainability measures lead to 60% reduction in emissions.

Zurich Insurance has implemented various ESG initiatives to minimise its environmental impact, resulting in a substantial decrease in carbon footprint, according to Vy Pham, Digital Platform Product Owner for Asia Pacific at Zurich Insurance.

A key focus of Zurich's strategy has been on reducing air emissions through targeted measures. "We introduced carbon budgets for business travel a few years ago," Pham explained. "For each business unit, we've set an amount they can use, and this helps us keep an eye on our impact whenever we book travel."

By imposing carbon budgets, Zurich not only monitors the financial cost of business travel but also its carbon cost. "We now consider both the financial impact of sending an employee overseas for a meeting or conference and the carbon costs too," Pham added. These efforts have paid off significantly, with Zurich achieving a 60% reduction in air emissions.

In addition to internal measures, Zurich has been proactive in helping its commercial partners adapt to climate change. "Zurich provides risk management and resilience services to help our clients adapt to climate change. This includes advisory services on climate risks and resilience planning," Pham noted. 

Zurich's focus on sustainability has also extended to product development. The company has rolled out nearly 40 sustainable products, aligning with its definition of sustainable revenue. "Half of these products were aimed at helping people who might not have access to insurance otherwise, and the other half promote environmental and investment sustainability for our customers," Pham said. Zurich aims to generate 10% of its revenue from sustainable sources by 2030.

To further enhance its efforts, Zurich is leveraging digital platforms to support its clean energy insurance solutions. The company has been expanding its digital capabilities to transition from paper-based operations and partner with like-minded organisations. 

"Data in analytics and AI play crucial roles for us in managing the risks associated with sustainability projects at our company," Pham explained. The company uses predictive analytics and AI algorithms to analyse historical data, predict potential risks, and proactively manage and mitigate these risks.