Insurance Australia Group (IAG) is joining a growing number of Australian companies that are enhancing their climate credentials in response to government requirements for reporting. The multinational insurance company, listed on the Australian Stock Exchange (ASX), has announced plans to transition its fleet of over 900 vehicles to electric and hybrid models by the end of the 2030 financial year with the goal of becoming a net zero insurer by 2050.
To support this transition, IAG will be installing domestic electric vehicle (EV) chargers in the homes of all employees who use an EV for work. The company has already introduced 110 low-emission vehicles into its fleet and aims to further expand this initiative. In New Zealand, the company has already started transitioning its fleet in 2021 and aims to complete the process by the end of 2024.
IAG CEO Nick Hawkins emphasized the company’s commitment to sustainability and addressing the impact of climate change. He stated, “With more than 2.4 million fleet cars utilizing Australian roads, it’s important that fleet owners consider ways to support the transition to a low-carbon economy.”
Every low-emission vehicle introduced into the fleet is expected to reduce scope one emissions by 47 percent compared to internal combustion vehicles. Car manufacturer Kia will be providing EV and hybrid options for IAG’s Australian fleet. Additionally, JET Charge will be supplying the charging infrastructure for the EVs.
Corporate Trend Toward Reducing Emissions
As part of new climate reporting laws, major companies in Australia will be required to make climate-related disclosures each financial year starting from January 2025. These disclosures will include information on climate risks, governance, strategy, and metrics, including scope one and two emissions. Treasurer Jim Chalmers highlighted that these reforms aim to support investment in cleaner energy and help companies manage climate risks.
While these reforms are seen as crucial for supporting the transition to a net-zero economy, concerns have been raised about the compliance burden on Australian businesses. Despite this, companies like IAG, Woolworths, Transurban, and Australia Post are actively working on sustainability projects and transitioning to electric vehicles to reduce emissions and combat climate change.
