nib sets pathway to net zero carbon emissions by 2040

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nib has announced that it has set science-based targets to achieve net zero carbon emissions by 2040.

The company's legal and chief risk officer, Roslyn Toms, said the commitment is an essential part of delivering on its purpose of better health and wellbeing. 

“Climate stability has an impact on the health and well-being of our members, our community and society,” said Ms Toms.

“We know we have an important role to play as a business to reduce our impact on the environment, a key pillar of our sustainability principles,” she said. “Our net zero targets align with the Paris Agreement to keep global warming well below 2°C and pursue efforts of 1.5°C.”

nib’s emissions reduction roadmap includes a 50 per cent reduction in scope one and two emissions by 2030, 25 per cent in scope three emissions by 2030, and net zero by 2040.

Scope one and two emissions are those directly associated with an organisation's activity, including the purchase of energy, while scope three are indirect value chain emissions.

nib said it has already achieved one of its near-term targets.

“We’ve reduced our combined Scope 1 and 2 emissions by 93% between FY21 and FY22, surpassing our target of a 50% reduction by 2030,” continued Ms Toms. 

“This was largely achieved through transitioning to 100% renewable energy use at all nib-controlled offices.”

In 2019, nib appointed external managers to manage the funds in its $1.17 billion investment portfolio. The managers’ mandate includes a strong commitment to exclude companies whose primary business is in carbon-intensive fossil fuels.

As part of the targets, the company said that 25 per cent of its in-scope investment portfolio must have science-based targets to achieve net zero emission by 2027, and 100 per cent by 2040.

“We are conscious that in order to achieve our goals we need to work with partners, suppliers, employees, and investment managers,” said Ms Toms.

In 2022, nib has also purchased 7,000 Australian carbon credits to offset the previous year’s emissions, including from the Aboriginal Carbon Foundation.

CEO Rowan Foley, said the project nib invested in, the Karlantijpa North Savanna Burning, aims to reduce carbon emissions through low-rainfall savannah burning.

“Beyond its environmental impact, the project also improves land access for Traditional Custodians, provides education and employment opportunities, strengthens the local economy, facilitates knowledge sharing, and helps maintain the Mudbarra language,” said Mr Foley.