Ecclesiastical Insurance Office plc announces results for the period ending 30 June 2022
Ecclesiastical Insurance Office plc (“Ecclesiastical”), the specialist financial services group*, today announces its 2022 interim results.
New research* from specialist insurer Ecclesiastical has revealed the majority of brokers don’t have the resource or knowledge to tackle the climate crisis by setting carbon reduction targets.
The survey of 250 brokers from across the UK discovered just one in five has set a net zero target. This increases to two in five (38%) among national brokers, but falls to 5% among regional brokers. The UK Government has committed to a target of net zero emissions across all industries by 2050.
The main barrier to setting a net zero target is brokers don’t have the resource at the moment to focus on this (62%). Further barriers are not knowing how to measure climate impact (29%) and not knowing how to reduce climate impact (23%), while one in five said their company had no interest in being net zero.
Over three quarters (77%) of brokers interviewed believe reducing their company’s climate impact is the right thing to do for the environment.
The top three steps brokers are taking to reduce their climate impact is minimising business travel (41%), reducing energy consumption in the office (37%) and increasing awareness amongst employees (23%). Switching to sustainable suppliers (16%) and going paperless (12%) are also top ways brokers are reducing their climate impact.
The research revealed one in five (21%) nationals are measuring their carbon footprint compared to just 2% of regionals and 1% of provincials.
Two in five (40%) feel their company needs more support to understand how it can reduce its climate impact.
More than a quarter (27%) of brokers believe their clients are increasingly interested in climate issues.
Of those surveyed, 17% agree their clients are more likely to do business with insurers committed to reducing their climate impact. However only one in 10 (11%) think clients are more likely to do business with brokers committed to reducing their climate impact.
Brokers feel responsible for tackling the climate crisis on a practical level, for example recycling wherever possible, however only 16% feel they are responsible for advising clients on how to reduce their climate risks.
One in five national brokers offer products and services that support carbon reduction but this reduces to 5% and 7% respectively amongst regionals and provincials. One in five (19%) nationals are also encouraging their clients to reduce their climate impact reducing to 5% and 4% respectively amongst regionals and provincials.
Adrian Saunders, Commercial Director at Ecclesiastical, said: “It’s encouraging to hear the majority of brokers believe reducing their company’s climate impact is the right thing to do for the environment.
“However while some are taking practical steps to reduce their environmental impact, the reality is that brokers don’t have the resource or knowledge right now to build meaningful plans to reduce their carbon emissions. Brokers are still feeling the effects of the pandemic, both on themselves and their clients, and achieving net zero is another big challenge for them. The research tells us brokers are calling out for support to understand how they can reduce their carbon emissions and that’s why we’re running broker training sessions to help them.”
Ecclesiastical is planning a series of webinars in June to support brokers to develop their carbon reduction plans and set effective targets. Benefact Group, which owns Ecclesiastical, recently announced its carbon reduction commitments to reach net zero by 2040.
* The research was commissioned by Ecclesiastical Insurance and conducted by FWD. 251 interviews with insurance brokers basked in the UK were carried out between January and February 2022. FWD is an independent research agency and the only UK agency to have received approval from BIBA.