Low-carbon transition calls for leadership, partnership and innovation

Ice caps melting, storms increasing in frequency and ferocity, wildfires raging around the world – all signs that climate change is worsening. While individuals can make efforts to help stem the tide, big businesses have most impact on the environment and so the greatest potential to slow the rate of change. We look at three that are leading the way and what they are doing to help.

In 2020 AIB became the first Irish bank to pledge to operate as carbon neutral by 2030, using a net zero approach, says Mary Whitelaw, its sustainability and corporate affairs officer.

“Recognising that the majority of our carbon footprint comes from lending, we set an ambition that green or transition lending should account for 70 per cent of our new customer lending by 2030 and that our entire lending portfolio should be net zero by 2040 – excluding agriculture, which should be net zero by 2050 in line with the Irish Government’s target for that sector,” says Whitelaw.

AIB’s sustainability strategy since 2020 has focused primarily on financing activities that will help to decarbonise the economy and support its customers to transition to a low-emissions, fair society, she adds.

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Following a review of its products, AIB Group decided to offer “green mortgages” across its AIB, EBS and Haven brands, along with green loans for personal customers. It has also taken part in the Strategic Business Corporation of Ireland Energy Efficiency Loan Scheme for SMEs, and has a growing number of sustainability-linked loans for businesses. Added to that, the bank offers “responsible investment options via Goodbody and AIB life; green and social bonds for the markets – including the first of each in Ireland; a deeper community connection; and an array of advisory services”, says Whitelaw.

“In tandem, we have continuously monitored and reduced emissions from our own activities,” she adds. “This has included the strategic step of entering into a corporate power purchase agreement with NTR plc in 2022 that resulted in the development of two new solar farms in Co Wexford, from which we will source up to 80 per cent of our energy supply while providing additional capacity for the national grid.”

Educating the masses

UCD is the built equivalent of a small town, spread over 133 hectares, says associate professor Paula Carroll. As well as buildings where teaching, learning, research and commercial activities take place, it has on-campus accommodation for students, plus offices and sports facilities.

“All the buildings and facilities need to be powered and heated,” says Carroll. “All the needs of the diverse population of over 33,000 students and 4,000 staff, as well as neighbouring communities, need to be taken into account when thinking about CO2 and reducing UCD’s carbon footprint. Emissions also arise from staff and students travelling to and from the Belfield and Blackrock campuses, and other UCD research facilities.”

The UCD Estates team is responsible for “keeping the lights on”, as Carroll euphemistically puts it. Its remit extends to managing energy usage, promoting energy-efficiency campaigns and implementing infrastructure projects such as the installation of photovoltaic panels on suitable roofs and air-source heat pumps to complement the heating systems.

“UCD has specific obligations as a public-sector body to reduce its emissions and lead by example,” says Carroll.

Insuring the future

Allianz broadly defines sustainability as leveraging and protecting our natural, social and economic resources in a way that allows everyone to enjoy a decent life, says chief underwriting officer Helen Merry.

“Allianz has achieved one of the insurance industry’s leading scores in the S&P Global Corporate Sustainability Assessment and is a member of the Dow Jones Sustainability Index,” adds Merry. “Allianz also co-chairs the Global Investors for Sustainable Development initiative.”

As part of the financial services giant’s commitment to addressing climate change, last year Allianz updated its emissions targets to reach net zero by 2030, 20 years earlier than its original target, says Merry.

“In order to achieve this we have reviewed our operations here at Allianz Ireland to understand where we can have the most meaningful impact both as an organisation and as a financial institution,” she adds.

“We have already taken a number of actions that resulted in us beating our greenhouse gas emissions reduction target in 2022, achieving a 29 per cent reduction overall. Emissions across energy, water, paper and waste were reduced by 30 per cent, 91 per cent, 29 per cent and 39 per cent respectively last year, while we also achieved a 43 per cent reduction in our travel-related emissions.”

Merry acknowledges that external factors such as changes to hybrid working have contributed to this success, as has the commitment and support of Allianz Ireland employees. The business is committed to continuing to make further progress across all systems and operations, she says.

The Allianz Ireland head office in Dublin runs on 100 per cent renewable electricity and has a passive-management cooling system that automatically opens windows to draw in cooler air

—  Helen Merry

“Our paperless taskforce has increased digitalisation and by applying our online discount rate for all new policyholders we have reduced paper consumption by 7 per cent per policy last year. Elsewhere, we have also digitised our pet-insurance customer journey by working with Irish digital business cards firm TAPiTAG and we have overhauled our pet claims process, which has the potential to eliminate up to 30,000 paper claim forms.

“The Allianz Ireland head office in Dublin leverages sustainable, energy-efficient office design. It runs on 100 per cent renewable electricity and has a passive-management cooling system that automatically opens windows to draw in cooler air. Earlier this year we also began installing energy-efficient LED lighting, which is expected to reduce electricity use by 50 per cent.”

Learning on the journey

The necessary transition to a low-carbon economy requires leadership, partnership and innovation on all sides, says Whitelaw.

“While providing direct support to our customers, AIB is also building relationships with industry and innovative organisations to achieve this common goal,” she says.

“This year alone, AIB announced a new partnership with GreenTech HQ, an entrepreneurial hub in Enniscorthy, Co Wexford, focused on developing green solutions, and became the exclusive financial institution partner with the Farm Zero C project, which aims to reduce greenhouse gas emissions and increase the productivity and resilience of dairy farms using a cross-disciplinary approach.

“In July University College Cork announced the appointment of Prof Valeria Andreoni as the AIB professor in sustainable business, a new position in the university that will play a pivotal role in advancing research, education and engagement initiatives that focus on promoting sustainability within the business sector.”

Staff and students, too, can play their part at an individual level in their teaching, research and day-to-day activities (powering down equipment where possible, sustainable travel etc), Carroll points out.

“The larger infrastructure projects – building retrofitting, more renewable energy etc – require funding via Government and other instruments,” she adds.

Merry says Allianz is making real progress and continues to work hard to be even more sustainable in business and operations.

“We understand that this is a huge challenge – it will require dedication and persistence – and we are learning along the journey,” she adds.

“To achieve our goals and drive better practice, we know that we have to remain closely aligned to the Irish Government’s Climate Action Plan and follow our Allianz Group Climate Change Strategy. Last month, Allianz Group announced its first net-zero transition plan, with 2030 intermediate targets for core business segments, which reinforces our commitment to positively impact the environment together with customers, partners and policymakers.”