Zurich Insurance Group has announced it is providing climate training materials and teaming up with carbon accounting firm Normative to offer free access to the Business Carbon Calculator.
According to the statement, these will help suppliers understand Zurich’s goals, calculate their carbon footprint, and obtain a blueprint of practical steps they can take on their own journeys to net-zero operations.
This engagement, the Group said, reflects Zurich’s overarching ambition to become a net-zero emissions business and to cascade climate action across the supply chain.
Linda Freiner, Group Head of Sustainability, said: “This initiative demonstrates Zurich’s commitment to emissions reduction throughout the value chain and illustrates how we use our expertise and resources to support others to transition to the net-zero economy.”
Last week, the global multi-line insurance company confirmed its withdrawal from the Net-Zero Insurance Alliance (NZIA) – shortly after Munich Re also revealed its discontinuation of its membership -, citing a desire to focus its resources to support its customers with their transition.
Zurich is one of only five insurance companies to be recognized with Supply Chain Engagement Leader status by CDP, the not-for-profit charity that runs the global disclosure system for individuals and organisations to manage their environmental impacts.
CDP recognizes Zurich among the top 8% of companies for supplier engagement on climate change.
The Group has stated that it aims for 75% of its managed procurement spend to be with suppliers that have science-based emission reduction targets by 2025 and net-zero targets by 2030.
“The first step to reducing emissions is calculating them. By providing access to the Business Carbon Calculator, Zurich is empowering its suppliers – especially SMEs – to accelerate the transition to more sustainable business practices,” said Normative CEO Kristian Rönn.
Zurich aims to become a net-zero emissions business in line with the Paris Agreement’s goal to limit global warming to 1.5°C above pre-industrial levels.
In March 2022, the Group brought forward the target date for achieving net-zero emissions in its own operations by 20 years to 2030 and set additional goals for its climate engagement with suppliers.
According to the CDP, on average, supply chain emissions are 11.4 times greater than a company’s own operational emissions.
The Normative Business Carbon Calculator works best for small and medium sized businesses operating in a single country. Larger companies can work with Normative paid carbon accounting and climate strategy services.
Zurich has negotiated discounted fees for any of its suppliers who choose to work with Normative.