Zurich Insurance Group has launched a new initiative aimed at decarbonizing its supply chain by providing suppliers with tools and resources to help measure and address its own carbon emissions.
The move follows the company’s announcement last year that suppliers responsible for 75% of its roughly $2 billion of procurement spend should have science-based emissions reduction targets by 2025 and net-zero targets by 2030.
Zurich will provide climate training materials and offer free access to carbon accounting firm Normative’s Business Carbon Calculator. The tool is optimized for small businesses and enables them to estimate their carbon footprint, identify emissions hotspots, and focus areas for action.
The announcement is the latest move by Zurich to target its Scope 3 value chain emissions, which are those outside of its direct control. The company has pledged to achieve net zero in its investment portfolio by 2050 and to reduce the carbon intensity of its listed equity and bond investments by 25% by 2025 and 30% for direct real estate investments.
It has also set goals for portfolio companies to set Paris-aligned emission reduction targets and announced measures including significant cuts to air travel and eliminating internal combustion vehicles from its fleet.
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.”