Major Insurer Converts Fleet of 900 to Electric Vehicles

The insurer is the latest in a string of Australian companies improving climate credentials as the government mandates reporting.

A car advertises its green credentials in Albany, Western Australia, on April 11, 2024. Susan Mortimer/The Epoch Times

Insurance Australia Group (IAG) will transition its fleet of more than 900 vehicles to electric and hybrid models by the end of the 2030 financial year.

The multinational insurance company, listed on the Australian Stock Exchange (ASX), is aiming to become a net zero insurer by 2050.

The company will install domestic electric vehicle (EV) chargers into the homes of all employees who use an EV for work.

The move follows a one year trial where the company tested and validated EVs in regional areas and cities where it identified charging infrastructure access as a barrier to ownership.

IAG has already introduced 110 low-emission vehicles into its fleet.

In New Zealand, the company began transitioning its fleet in 2021 and aims to complete the process by the end of 2024.

IAG Chief Executive Officer Nick Hawkins highlighted the company’s efforts for sustainability and to mitigate the impact of climate change

“With more than 2.4 million fleet cars utilising Australian roads, it’s important that fleet owners consider ways to support the transition to a low-carbon economy,” he said.

IAG said every low-emission vehicle that is introduced to the fleet will lower scope one emissions by 47 percent compared to internal combustion vehicles.

Scope one emissions are direct greenhouse gas emissions from sources that are controlled by the company.

Car manufacturer Kia will provide EV and hybrid options across IAG’s Australian fleet.

“Kia Australia is pleased to support IAG in its transition to an electrified fleet through the provision of electric and hybrid vehicles for their employees," CEO Damien Meredith said.

Meanwhile, Australian company JET Charge will provide IAG with the charging infrastructure for the EV’s.

Its CEO Tim Washington said, “We know that fleets are looking for ways to electrify, and that infrastructure is a key barrier. Our end-to-end charging as a service solution demonstrates what running private charging networks look like at scale as we rapidly transition to net zero.”

Corporate Trend Toward Reducing Emissions

IAG is the latest of multiple corporate giants improving their climate credentials as the government brings in new climate reporting laws.

From January 2025, major companies will need to make climate-related disclosures each financial year, such as climate risks, governance, strategy, and metrics, including scope one and two emissions.

This requirement will be introduced in three stages according to company size, the Treasury said (pdf).

Treasurer Jim Chalmers said the government was taking action on climate reporting to support more investment in cheaper and cleaner energy while also helping companies and investors manage climate risks.

“These critical reforms provide investors and companies the clarity and certainty they need to support the net-zero transformation, and further strengthen Australia’s reputation as an attractive destination for international capital,” he said.

However, Shadow Treasurer Angus Taylor and Shadow Minister for Financial Services Luke Howarth raised concerns about a $2.3 billion (US$1.53 billion) compliance burden on Australian businesses.

“This cost will be passed on to small businesses and is bad for investment, bad for the economy and bad for productivity,” the ministers said.

Multiple Companies Working on Climate Credentials

IAG is one of multiple Australian companies rolling out EV and sustainability projects across the nation.

Supermarket giant Woolworths has also revealed plans to make all home delivery trucks 100 percent electric powered by 2030. This will add 1,000 EVs to Australian roads.

Transurban is also looking to include more EVs in its fleet with multiple initiatives underway, including providing customers with opportunities to drive EVs.

In late August, Australia Post unveiled a plan to rollout 175 electric motorbikes for mail delivery across the country.

Qantas, on the other hand, has recently joined an alliance of airlines aiming to accelerate the global production of aviation biofuel.