If P&C Case Study
If P&C Insurance reaps the benefits of strategic carbon management
Objective: If P&C Insurance is a leading property and casualty insurance company in the Nordic region headquartered in Stockholm. The company's mission is to offer insurance solutions that provide clients with security and stability in their business operations, housing and daily life. The company serves 3.3 million private and business clients, including Nordic companies with international operations. If P&C Insurance strives to be the forerunner in the insurance industry in managing climate change related risks.
Stormy weather poses many challenges
The effects of climate change are likely to increase the rate of extreme weather events. This in turn will lead to greater damages and amplified property losses of all kinds. As assumers of both property and liability risks, insurers seek to mitigate potential losses every day through risks management. This can be achieved by adequately pricing climate risks, providing quantitative estimates of risks and, finally, devising adaptation and mitigation strategies. If P&C Insurance offers insurance cover related to severe weather, such as heavy rainfalls and floods. Over the last two decades, the company's pay outs for weather-related disasters have doubled. As a changing climate poses a serious threat to the prosperity of the insurance industry, If P&C Insurance actively supports activities that mitigate climate change.
Climate change is also a highly significant topic among the company's main stakeholders. In order to achieve credibility in the marketplace, If P&C Insurance realised the importance of reducing the company's own carbon footprint. The challenge was to find a credible method of measuring and communicating the company's climate impact.
The selection process
If P&C Insurance was looking for a provider that had a long history of helping companies measure, report and manage their carbon footprint. Another important factor in the selection process was the potential provider's ability to help the company realise other elements of the environmental strategy, such as publishing an annual environmental report and achieving carbon neutrality. After a thorough scan of the market, South Pole Group was chosen thanks to its expertise in climate change and its broad portfolio of climate change-related products and services. If P&C Insurance chose South Pole Group's carbon footprinting services, which include the calculation tool SvanteTM and advisory on GHG management.
South Pole Group's carbon footprinting services cater to If P&C Insurance's needs of measuring and communicating their carbon footprint in a credible manner. South Pole Group's team of carbon footprinting consultants enabled If P&C Insurance to achieve their climate change strategy objectives by providing expertise in GHG management and environmental reporting. The calculation tool SvanteTM, for which the company opted for, is based on the GHG Protocol; the world's most widely used standard for calculating greenhouse gas emissions. This ensures that the data generated is accurate, complete, consistent, relevant and transparent. Thus, the data generated by SvanteTM is transferable to official reports or reporting frameworks. If P&C Insurance has used the data generated by the tool in the annual environmental report and in the reporting to the ClimateWise network – the global insurance industry's leadership group to drive action on climate change-related risks. In addition, the data has been used as a basis for helping the company achieve carbon neutrality. This includes offsetting the emissions in projects that contribute to building low carbon economies in developing countries.