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Press release from the SMI 04 August 2022

Major insurers and brokers launch Global Pledge for Sustainable Supply Chains

The Insurance Task Force (ITF), part of His Royal Highness The Prince of Wales’ Sustainable Markets Initiative (SMI), has today launched a Global Supply Chain Pledge which aims to drive greater sustainability across insurance industry supply chains.

13 major insurers and brokers today signed a commitment to take action to encourage and support their supply chain partners to make the green transition. Signatories have made a commitment to take into account the emissions within their direct supply chain by focusing on three key actions:

 

1.     Encouraging and helping suppliers to set meaningful sustainability targets with an ultimate goal of adopting Paris-aligned Net Zero Targets: insurers and brokers will, during procurement processes and then through ongoing engagement with suppliers, encourage supplier firms to set meaningful sustainability targets with the ultimate goal of adopting Net Zero Targets – for example a 50% reduction in global emissions by 2030 in advance of reaching Net Zero by no later than 2050.

 

2.     Advance initiatives with a goal of measuring the carbon footprint of insurance supply chains and report transparently on progress: to support more sustainable supply chains, the sector will develop methodologies for assessing and measuring the carbon intensity of suppliers to identify hotspots. Once established, these methodologies will be used to identify suppliers that have lower footprints or those who are taking active steps to increase sustainability.

 

3.     Work to tackle supply chain carbon hotspots: signatories are committed to promoting engagement across the sector to address parts of the supply chain with the largest carbon footprint and facilitate best practice to driving up sustainability. This will allow insurers to replicate and build on the stewardship approaches adopted by investors and drive change in the supply chain at a sectoral level, rather than only on a case-by-case basis.

Download the full press release here.