IAG today launched its new Climate & Disaster Resilience Action Plan outlining the commitments and goals that will drive our action on climate change and disaster resilience over the next three years.
We know the need for businesses, governments and communities to act on climate change has never been more urgent, with the latest findings from the UN’s Intergovernmental Panel on Climate Change showing temperatures in the last decade are now warmer than at any time during the past 100,000 years. IAG’s own claims data and research – conducted by our specialist Natural Perils team of meteorologists, scientists, hydrologists and statisticians – shows climate change is already leading to more frequent and more damaging weather events, including severe storms, hail, bushfires, floods and tropical cyclones. We recognise achieving net zero emissions as soon as possible can limit the impact climate change will have on severe weather.
As an insurer, we see first-hand the impacts of climate change on our customers and communities across Australia and New Zealand when we're on the ground helping them recover from devastating severe weather events. That’s why taking action on climate change and disaster resilience goes to the heart of our purpose to make your world a safer place.
Our Climate & Disaster Resilience Action Plan will make a meaningful difference to our organisation and ensure we help Australians and New Zealanders safely and sustainably adapt to a changing climate and transition to a low emissions future.
IAG Managing Director and CEO
Building on our first Climate Action Plan
For nearly two decades, IAG has worked to understand climate change, its impacts on our business, and the ways we can help reduce climate risk for our customers and communities. We launched our first public Climate Action Plan in 2018 and are proud to build on that work in our updated three-year Climate & Disaster Resilience Action Plan. Its launch is off the back of world leaders and experts convening at the UN Climate Change Summit (COP26) to agree on global targets to achieve a safer, net zero future.
We’re proud of what we’ve achieved over the past three years, including reducing our emissions by 47% since 2018. Through our data and climate science expertise we’ve improved the understanding of climate change within our own business and contributed to the understanding of its impacts for governments, industry, our customers and communities.
In New Zealand, we have continued our focus on educating and advocating for greater action on adapting, including through our annual Ipsos-IAG Climate Poll, AMI Weather Outlook, climate education events through the Climate Leaders Coalition, and our work with governments and industry groups.
In Australia and New Zealand, we’ve used our claims data and climate science expertise to contribute to the scientific discussion about the current and future climate to help inform and drive enhancements to climate and disaster resilience policy at all levels of government. For example, our Severe Weather in a Changing Climate report, which we developed with the US-based National Center for Atmospheric Research, highlights the increased frequency and severity of severe weather events in a changing climate, and advocates for changes in disaster recovery and resilience planning.
In Australia we’ve also helped people and communities adapt and prepare for the changing climate through initiatives such as the quarterly NRMA Insurance Wild Weather Tracker which raises awareness of the increased frequency and severity of extreme weather through the release of our claims data and insights, and through collaborating on education and awareness activities with our disaster resilience partners, including the NSW State Emergency Service (NSW SES) and the Australian Red Cross.
Last week we also announced our partnership with the Minderoo Foundation, as the founding member of the Australian Resilience Corps (ARC). The ARC is a new initiative to help Australians rally together to prepare communities for natural disasters. Volunteers across Australia can access training in how to improve community resilience to natural disasters. Trained ARC volunteers are then connected with existing community-led volunteer organisations to support work that helps communities at risk of natural disasters shift their focus from recovery to resilience.
Our FY22-24 goals and commitments
Our FY22-24 plan has an even greater focus on finding solutions to address climate risk and sets out our climate commitments across three focus areas:
1. Rethinking risk
This is about helping our customers and communities reduce their risks and build resilience to the impacts of climate change. Our commitments in this area go to the core of our insurance business, including how we manage capital, and how we price, underwrite and design our products to support insurance accessibility and affordability.
2. Transforming the System
We will continue to collaborate with the business, government and community sectors on climate research, resilience and policy to encourage adaptation to a net zero future.
3. Driving to Zero
Our third focus is about reducing our own emissions. We’ve committed to reducing our emissions to net zero by 2050 across our value chain, including with suppliers and customers. This will be supported by a 50% reduction in emissions by 2030.
Tracking our progress
Our IAG Group Executive are directly accountable for the commitments set out in our Climate & Disaster Resilience Action Plan and we will report on our progress through yearly scorecards that outline progress against our commitments and goals.
We look forward to continuing to work with our customers and communities, through our FY22-24 plan, to help them build resilience and take their own action to reduce the impacts of climate change.
For more information read the full IAG Climate & Disaster Resilience Action Plan.