Direct Line Insurance: Group carbon reduction plans to set science-based targets endorsed by SBTi

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Direct Line Group, whose well-known insurance brands include Direct Line, Churchill, Privilege and Green Flag, has received approval from the Science Based Targets Initiative (SBTi) for its plans to reduce greenhouse gas emissions. greenhouse (GES).

Penny James, CEO of Direct Line Group, said:

“This is an important step on our journey to net zero emissions. Fighting climate change is good for the planet and good for the sustainability of our business.

We have millions of customers, spend millions on our supply chain every year, and our investment decisions can influence the assets we own. It’s exciting to see the practical steps now underway to help the company reduce emissions, because that’s how we can build trust and make further progress.”

Following approval by the SBTi, Direct Line Group has five targets focused on the most carbon intensive areas of its business. One objective covers operational emissions and four other objectives cover its investment portfolio.

  • Operational emissions: The group has offices throughout the UK and, as one of the UK’s leading motor insurers, has a network of 22 garages to help customers with efficient repairs. The Group’s objective for its properties and network of garages is to almost halve absolute emissions by 2030, compared to a 2019 baseline. Several innovative projects are underway:
    • electrified heating and cooling systems run on renewable energy

    • replace diesel with hydrogenated vegetable oil in tow trucks

    • eliminating gas consumption in paint spray booths by switching to electricity.

  • Investment portfolio: The Group’s investment portfolio objectives cover 75% of its total investment and lending activities in monetary value as of 2019. The four investment objectives cover corporate bonds, the largest class of assets in its portfolio, as well as the real estate loan and commercial property portfolios.

Pending the SBTi’s Science-Based Net Zero Targets for Financial Institutions, which should be published in 2023, the Group has also set its own emissions reduction target for its supply chain. This voluntary objective set by the company is part of the Group’s Sustainable Purchasing Initiative launched in 2021, encouraging the Group’s main suppliers under its direct control to adhere to SBTi or equivalent objectives.

Setting science-based goals is the final step in Direct Line Group’s sustainability strategy. Over the past decade, the company has focused on integrating climate initiatives into its day-to-day work, thereby reducing emissions across the business. Key achievements include:

  • Source 100% electricity from renewable sources since 2014

  • Installation of energy-efficient boilers, air conditioning units and LED lighting in its offices and automotive service sites

  • New Bristol office opened in 2018 with energy-efficient design

  • Launch of a “Make electric easy” electric vehicle pack for Direct Line engine customers

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Notes for Editors

  • The Science Based Targets Initiative (SBTi) is a partnership between CDP, the World Resources Institute, the World Wide Fund for Nature and the United Nations Global Compact. The SBTi develops methods and criteria for effective corporate climate action and independently validates corporate goals in line with the goals of the Paris Agreement.

  • In 2021, Direct Line Group embarked on the “Race to Zero” – in which the insurer will strive to limit global warming to a trajectory of 1.5 degrees by 2050.

  • The five scientific objectives approved by the SBTi and targeted by DLG can be found here https://sciencebasedtargets.org/resources/files/Target-language-and-summary_Direct-Line-Insurance-Group-plc.docx.pdf

  • The SBTi involves financial institutions setting targets covering their own operations (Scope 1 emissions), purchased electricity and heat (Scope 2 emissions) and their investment portfolio (Scope 2 emissions). of application 3, category 15).

  • The Group has set investment portfolio targets for all classes required under the guidelines of the financial institution SBTi. This covers 75% of the Group’s total investing and lending activities in monetary value as of 2019. For the remaining asset classes, the SBTi currently has no methodology and is therefore out of scope.

  • Pending the SBTi’s Science-Based Net Zero Targets for Financial Institutions, which should be published in 2023, the Group has set its own emissions reduction target for its supply chain which is part of the scope 3 emissions of the Band. The Group has set an internal emissions reduction target of 27.5% aligned with a scenario well below 2 degrees for its supply chain under its direct control.

For more information contact:

Jade Trimbee

Senior Manager

Direct line group

Mobile: 07825 315 931

E-mail: [email protected]

Direct Line Insurance Group plc

Direct Line Group (DLG) is one of the UK’s leading insurance companies. The Group’s vision is to create a world where insurance is personal, inclusive and a force for good. Through its well-known brands, which include Direct Line, Churchill, Privilege, Darwin, NIG, Direct Line for Business and Green Flag, DLG helps people get on with their lives, giving them peace of mind now and in the future. . Its brands offer a wide range of general auto, home, commercial, travel, pet and salvage insurance products, both directly to customers and through price comparison websites and through brokers, and it underwrites insurance products distributed by its third-party partners. The Group believes that by adopting sustainable practices, it creates a better corporate culture, better able to provide more reliable products and bring long-term rewards to its customers, employees and shareholders.

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