MAPFRE has cut 1,167,483 tons of CO2 emissions associated with its investments, equivalent to approximately all the emissions generated by a city of 200,000 people in one year. This reduction was carried out progressively between 2019 and 2021, during which time the company’s emissions fell by 20%.
The measurement was carried out using a tool developed in-house by MAPFRE AM, which the insurance group’s asset manager aims to use to analyze and assess the risks associated with climate change in its investments, thereby contributing to one of its most important sustainability commitments: reducing emissions in the investment portfolio by 10% by 2024.
Considering the environmental impact of its investments is part of MAPFRE’s strategy to decrease its carbon footprint in all of its activities and areas of influence, including those related to its portfolio of assets. To that end, this measurement tool is used to calculate the total annual emissions generated by the company’s assets. Thus, the company identifies the risks and opportunities that its investments pose with regard to the business’ sustainable development, which is fundamental to ensuring an offering of low-carbon products and services.
With this new methodology, MAPFRE takes another step forward in the quality and capacity to report its carbon footprint; although current regulations have established certain specific indicators for such calculations, there are still several challenges for determining how to calculate assets such as government bonds, finance sector assets, private companies, derivatives or funds, etc.
The data have been reported with an eye to the commitments arising from the Corporate Sustainability Reporting Directive proposal (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR), which provide for reporting on the company’s carbon footprint and considering its different scopes as a business.
Committed to decarbonization
In the framework of its Strategic Sustainability Plan 2022-2024, under the concept #PlayingOurPart, MAPFRE has committed to contributing to decarbonizing the economy, aiming to achieve carbon neutrality by 2050, i.e., zero net emissions in its insurance and reinsurance underwriting portfolios.
To achieve this goal, MAPFRE promotes agreements, products, and services to reduce energy consumption and its carbon footprint, and it undertakes public commitments such as not insuring or investing in coal, gas, or oil companies that do not have an energy transition plan.
ESG in business
MAPFRE promotes a business strategy based on sustainability and it has a model that places people at the center of everything it does, with demanding commitments regarding the environment, society, and corporate governance.