Global property and casualty insurer Liberty Mutual Insurance announced today a series of climate-focused commitments, including a pledge to slash emissions from its operations and to work towards measuring and reporting emissions from underwriting portfolios through its new membership in the Partnership for Carbon Accounting Financials (PCAF).
In its own operations, Liberty Mutual has committed to cut Scope 1 and 2 GHG emissions by 50% by 2030, from a 2019 baseline. The company stated that it will take action to increase operational efficiencies and identify renewable energy opportunities across its real estate portfolio.
Francis Hyatt, Chief Sustainability Officer at Liberty Mutual Insurance, said:
“Today’s announcement illustrates our continued focus of advancing our sustainability strategy. We’re proud of this particular commitment, which aligns with recommended milestones set by credible ESG thought leaders. We recognize that there is more work to be done to address climate change and its impacts and that we must play a role in encouraging a responsible transition to a low-carbon economy.”
The PCAF is a global partnership of more than 140 financial institutions, representing over $43 trillion in total assets, with a mission to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with loans and investments. Earlier this month the PCAF launched a partnership with the recently convened Net-Zero Insurance Alliance (NZIA) to form a working group to develop the first global standard to measure and disclose insured greenhouse gas (GHG) emissions.
Liberty Mutual announced that it has joined the PCAF and will participate in the new working group.
Rakhi Kumar, Senior Vice President of Sustainability Solutions at Liberty Mutual Insurance, said:
“We look forward to supporting the important and urgent work of the Insured Emissions Working Group. There is a significant need to create a methodology for calculating and evaluating underwriting portfolios that is both meaningful and measurable, giving insurance companies useful information and a framework for reporting that is critical to facilitating a transition to a low-carbon future.”