UK insurer Aviva to go 100% renewable under 2040 net-zero carbon plan

British insurer Aviva Plc (LON:AV) will exit shareholding in all businesses that bring over 5% of their revenues from coal under a broader plan to become a net-zero carbon emissions company by 2040, which also includes a 100% transition to renewable power.

The insurance group announced a range of milestones it will seek to reach under its climate strategy that covers its scope 1, 2 and 3 emissions. By the end of 2021, Aviva will cease underwriting insurance for companies that source more than 5% of their revenues from coal or unconventional fossil fuels

Aviva’s plan is to cut 25% of the carbon intensity in its investments by 2025 and 60% by 2030 and achieve net zero carbon emissions from its operations and supply chain by 2030. For that purpose, Aviva has pledged to use 100% renewable electricity for all of its offices by 2030 and switch in full to electric or hybrid vehicles by 2025.

In terms of investment, Aviva will pour GBP 10 billion (USD 13.94bn/EUR 11.58bn) of assets from its auto enrolment default and other funds into low-carbon initiatives by end-2022, while by 2025, Aviva Investors will spend GBP 2.5 billion on low-carbon and renewable energy infrastructure schemes.

The insurer noted it may need to remove residual emissions in 2040.

(GBP 1.0 = USD 1.394/EUR 1.158)

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