How Allianz & Zurich Insurance Use Sustainable Procurement
Consumer and stakeholder expectations for transparency and accountability are soaring, so organisations are stepping up by incorporating ethical standards, sustainability and social responsibility into their procurement practices.
Insurance companies play an important role in risk management, including those associated with climate change.
Insurance giants are aligning their procurement operations with the expectations of investors and regulators, which is not only crucial for minimal environmental impact but also bolsters long-term resilience.
Meet Zurich Insurance Group
Zurich Insurance Group is committed to reducing emissions across its operations.
The group aims to become net-zero by 2030 — a goal far ahead of its original 2050 target.
Its Climate Transition Plan rests on four main pillars: enabling an economy-wide transition to net-zero, enhancing societal resilience, advocating for supportive policies and transforming operational practices.
Mario Greco, Group Chief Executive Officer at Zurich Insurance Group, states: “Supporting a successful transition offers the prospect of a stronger, more prosperous future that will ultimately benefit our customers, the companies we invest in and our own business.
“There will be setbacks and challenges, but the price we pay for inaction is far higher than the price of protection.
"As a global insurer, Zurich will be part of a collaborative solution. We are supporting the net-zero transition while helping make society more resilient, so that together, we can build a better future for the next generations.”
About Allianz
Allianz also embeds ESG standards across decision-making to ensure they have a positive economic and social impact on communities.
The financial service company has been carbon-neutral since 2012, highlighting its commitment to creating a greener future.
Piril Kadibesegil Yasar, Head of Sustainability at Allianz Trade, explains: "Our sustainability roadmap is based on objective and measurable criteria, according to which we can track our progress and see where there is room for growth.
"I am proud to share that as of 2023, we are sourcing 100% of our electricity from renewable sources and we are on track to cut 50% of our GHG emissions/employee by 20252 from our own operations.
"We are EcoVadis platinum certified in the DACH region, hold EDGE certification and Great Place to Work certification in six countries and are continuously working with credible third parties to assess our sustainability performance.”
Sustainable sourcing
Zurich Insurance Group expects all of its suppliers to have a governance body or person responsible for helping to reduce negative impacts on the environment and take active improvement measures.
It also expects suppliers with more than 250 employees or annual revenues of more than US$50m to collaborate across the value chain to improve their environmental impact.
Phil Soderberg, Former Global Head of Procurement and Vendor Management at Zurich, explains: “We encourage our suppliers to establish a diverse supplier program with the objective of providing fair access to supply opportunities for companies that are owned and operated by at least 51% by one or more minority, woman, LGBTQ+, veteran, service-disabled veteran, person with a disability, aboriginal-indigenous person or a historically underutilised business defined under applicable country specific rules.
"We encourage our suppliers to establish a social procurement programme which the objective of proving fair access to supply opportunities for social enterprises. Social enterprises are businesses with a social or environmental mission. Like traditional businesses they aim to make a profit, but they reinvest them so that society benefits.”
Linda Freiner, Chief Sustainability Officer at Zurich Insurance, says: "Sustainability is about how we do business today in a way that safeguards the future of our company and our society."
It also expects its suppliers to:
- Comply with data protection and privacy laws
- Be anti-bribery and anti-corruption
- Comply with regulations and laws on anti-money laundering, tax and finance
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