Tackling our own footprint – Swiss Re’s Greenhouse Neutral Programme
In October 2003, the Swiss Re Group launched its "Greenhouse Neutral” programme with the goal to reduce Swiss Re’s CO2 emissions by 15% per employee within ten years and to offset the remaining emissions through the purchase of certified emission reductions (CER) and high-quality verified emission reductions (VER). Based on the 2007 results, the decision was made to step up the goal to a 30% reduction in Swiss Re’s CO2 emissions per employee by October 2013.
When Swiss Re launched its Greenhouse Neutral programme in October 2003, it was the first large global financial services company to voluntarily commit itself to become a greenhouse neutral company. Swiss Re’s Greenhouse Neutral programme is based on two pillars:
- The reduction of CO2 emissions per employee by 30% within ten years (basis 2003)
- Offsetting the remaining emissions
In January 2008, a total of 230 000 tons CO2e high-quality VER’s were retired for the first time. This amount offset Swiss Re’s total emissions from October 2003 to end of September 2007. Swiss Re can therefore claim to be a greenhouse neutral company since October 2003. Any further emissions will be offset on an annual basis.
In addition, CO2 emission intensity was reduced by over 25% between 2003 and 2007.
Reduction
The reduction is being achieved through different energy saving measures at the locations as well as through the purchase of electricity from renewable energy sources. In 2005, Swiss Re started an ambitious programme to purchase renewable energy in its major business locations to reduce emissions from electricity consumption. The company also established a minimum standard for the procurement of electricity from renewable energy sources to secure high quality supplies.
In 2007, eleven locations worldwide covered their electricity consumption at least partly with electricity from renewable energy sources: Armonk, Fort Wayne, Kansas City/Overland Park, London, New York, Munich, Paris, Rome, Sydney, Tokyo and Zurich. In the case of London, Munich, Paris, Rome and Zurich electricity is sourced 100% from renewable energy.
Compensation
All CO2 emissions generated through business activities – ie from electricity and heat consumption as well as from business travel – are compensated on an annual basis.
Offsetting is achieved through two different channels:
- Investment into the World Bank’s Community Development Carbon Fund for which a contract was signed in October 2003.
- Purchase of high-quality verified emission reduction certificates (VER) through Swiss Re’s Environmental and Commodity Markets (ECM) unit
To secure that the VER’s are of a high quality, the following criteria must be fulfilled:
- Priority is given to projects which support renewable energy technologies and energy efficiency improvements, eg projects which support photovoltaic, solar thermal, ecologically sound biomass and biogas, wind, geothermal and small and low-impact hydro power generation. Large hydro projects are only used for offsetting if they generate strong sustainable side-effects and have a low environmental impact (eg no dams or reservoirs); projects which support sinks (geological or biological) are excluded.
- Priority is given to projects in Africa, Asia and Latin America with preference to least developed countries and poorer areas of developing countries.
- Certificates must be verified in line with trustworthy and widely accepted standards, such as The Climate Group’s Voluntary Carbon Standard (VCS). The standard requires a trustworthy calculation of the baseline and a clear and confidential additionality of the project.
Data
The data to determine Swiss Re’s CO2 emissions are gathered worldwide annually at each Swiss Re location with more than 50 employees. The data covers Swiss Re’s electricity and heat consumption as well as business travel. In 2007, 33 locations reported their data, covering almost 90% of Swiss Re’s total workforce. The result is extrapolated to cover 100%.
Communication
Swiss Re’s energy consumption, business travel and CO2 data are externally assured by PricewaterhouseCoopers annually, adding credibility to Swiss Re’s statements. The CO2 data are announced in Swiss R’s Annual as well as in its Corporate Responsibility Report. Further, the data are reported to the World Economic Forum’s Greenhouse Gas Register . Swiss Re also participates in the Carbon Disclosure Project.
