MAPFRE joins Net-Zero alliance to eliminate emissions by 2050
The insurance company is increasing its demand for sustainability and positioning itself as a relevant player in the fight against climate change.
It will reduce its environmental footprint as far as possible, and support decarbonization through underwriting and investment.
By 2024, it will neutralize MAPFRE’s footprint in eight countries and by 2030, in the entire Group.
MAPFRE has joined the Net-Zero Insurance Alliance (NZIA) with the objective of achieving greenhouse emission neutrality by 2050, that is, zero net emissions in its insurance and reinsurance underwriting portfolios.
This commitment raises MAPFRE’s demand for sustainability, as it means that in coming years, it must reduce greenhouse gas emissions as far as possible throughout the organization, and eliminate residual emissions that it has not been able to reduce through offset projects.
In order to do so, MAPFRE must establish underwriting criteria so that it can have a significant impact in terms of emissions, as well as define decarbonization commitments with more relevant customers, and promote agreements, products, and services that foster carbon footprint reduction, among other things.
Being Net-Zero means that the Group is contributing to one of the goals of the Paris Agreement, which consists of limiting the rise in global temperature to 1.5ºC above preindustrial levels by 2100.
“Economic decarbonization is essential for the planet,” pointed out Antonio Huertas, MAPFRE Chairman and CEO, who has indicated that “our environmental commitment is to continue raising the demand for sustainability firmly and progressively, accompanying society in a fair transition, and helping our customers and people who depend on their activity to also converge in this direction.” He also highlighted that “from our end, we care about improving the management of our environmental footprint, promoting the circular economy, and, through underwriting and investment, supporting the fair transition toward a net-zero economy, prioritizing people’s well-being.”
Antonio Huertas: “Economic decarbonization is essential for the planet”
The ambition to achieve net zero emissions in 2050 requires demanding short, medium, and long-term objectives.
The insurance company’s Sustainability Plan 2022-2024 and Environmental Footprint Corporate Plan 2021-2030 include objectives that reflect the fact that the entity wants to play an active role in the “necessary and urgent transformation into a low-carbon economy.” In this regard, the company has committed to neutralizing MAPFRE’s carbon footprint by 2024 in eight countries, and the challenge is to reduce the Group’s carbon footprint by 50% (compared to 2019) by 2030, and to neutralize the remaining carbon footprint for the Group as a whole.
ESG in Business
The company currently contributes to decarbonization with various initiatives, such as applying ESG criteria in investment. In this regard, it does not invest in companies that earn 20% or more of their revenue from coal-produced energy. In addition to ESG criteria in underwriting, the company does not insure the construction of new infrastructure related to coal mines or thermal power plants, and has stopped underwriting new risks related to tar sands and petroleum or gas in the Arctic.
In 2021, it achievedcarbon neutrality in Spain and Portugal and attained Zero Waste Certification, which has allowed it to recycle 351 tons of waste in one year.
The insurance company is also developing sustainable products, such as Gama Cambio [Change Range], a new MAPFRE insurance for electric and hybrid vehicles, and responsible funds, and is carrying out initiatives at its workplaces to save electricity, water, and paper, promote mobile work, and reduce business travel.
21 Insurance Companies
Currently, 21 global insurance and reinsurance companies are part of the Net-Zero Insurance Alliance, all of which are members of the UNEP-FI and signatories of the Principles for Sustainable Insurance (PSI).