Aviva Reaffirms Commitment to Net Zero by 2040 Amidst Climate Policy Challenges
Despite growing political resistance to climate goals in the UK and US, Aviva, one of the world’s largest insurers, has firmly reaffirmed its commitment to achieving net zero carbon emissions by 2040. Under the leadership of CEO Amanda Blanc, Aviva has outlined a clear and ambitious pathway that includes significant cuts in operational emissions, sustainable investments, and supplier engagement. This renewed pledge comes alongside a robust financial performance and signals the firm’s unwavering dedication to climate action in the face of sector-wide backlash.
Aviva’s Ambitious Net Zero Targets
Clear Pathway to 2040 Net Zero
Aviva has set itself apart by committing to becoming a Net Zero carbon emissions company by 2040, a target considered the most demanding among major insurers worldwide. The company’s strategy includes:
- 25% reduction in carbon intensity of investments by 2025
- 60% reduction in carbon intensity of investments by 2030, surpassing the Paris Agreement’s 50% goal
- Achieving net zero carbon emissions from its operations and supply chain by 2030
These targets apply comprehensively across Aviva’s investments, operations, underwriting, and supply chain, covering Scope 1, 2, and 3 emissions, including shareholder and policyholder assets under its control.
Actionable Investment Goals
Aviva is aggressively increasing its green investments, with milestones including:
- Investing £2.5 billion in low carbon and renewable energy infrastructure by 2025
- Delivering £1 billion in carbon transition loans by 2025
- Committing to investing £6 billion in green assets, including £1.5 billion of policyholder money into climate transition funds by 2025
- Having already invested £8.7 billion in sustainable assets since 2019
Operationally, Aviva has achieved 51% reduction in carbon emissions since 2019 and uses 100% renewable electricity across its office locations. Additionally, it plans to electrify its vehicle fleet in the UK and Ireland by the end of 2025 and globally by 2027.
Leadership and Industry Context
Amanda Blanc’s Climate Leadership
CEO Amanda Blanc, honored with a damehood in 2023 partly due to her climate work, emphasized that climate risk is not just a priority for clients but a business imperative. She highlighted recent extreme weather events such as wildfires in Canada and floods in the UK as clear signals that insurers must lead in addressing climate change to maintain the insurability of properties.
Blanc stated,
“It is vital we offer optionality for investors and customers while navigating the practical impacts on our insurance business.”
Sector-Wide Challenges and Reactions
Aviva’s commitment comes during a tumultuous period for climate policies, with several major US and UK financial institutions, including JPMorgan, Citigroup, Bank of America, Morgan Stanley, Goldman Sachs, HSBC, and Barclays, pulling back from UN-backed Net-Zero Banking Alliance commitments amid political backlash.
Standard Chartered CEO Bill Winters criticized such rollbacks, calling them “shameful” and emphasizing the necessity of genuine climate action beyond trend-following.
Aviva, standing firm, continues to prioritize science-based, validated targets and public annual reporting to maintain transparency and accountability.
Financial Performance and Green Growth
Despite economic uncertainties, Aviva reported a strong financial performance, with a 22% rise in operating profit to £1 billion for the first half of 2025, driven by growth in general insurance premiums and the wealth management business. This financial strength supports the company’s green transformation initiatives.
Similarly, rival insurer Admiral posted an impressive 67% surge in half-year profits to £516 million, illustrating robust market demand and the profitability of insurance innovation.
Supplier Engagement and Operational Measures
Aviva insists on comprehensive climate action extending to its supply chain, aiming to engage 70% of suppliers by spend to commit to science-based targets by end of 2025. This initiative underscores the insurer’s holistic approach—addressing emissions not only internally but across its wider ecosystem.
The company has committed to ongoing divestment from fossil fuel-related activities and adjusting underwriting portfolios to reflect low-carbon transitions.
Aviva’s reaffirmed net zero commitment represents a bold leadership stance amid a challenging global climate policy environment. By setting one of the most ambitious timelines in the insurance sector and backing it with quantifiable targets, robust investments, and operational reforms, Aviva demonstrates how climate ambitions can align with business growth and resilience.
As the climate crisis accelerates and extreme weather events escalate worldwide, Aviva’s example highlights the critical role insurers play in shaping a sustainable future. Its clear pathway to 2040 net zero underscores the necessity of long-term strategic planning and steadfast dedication to carbon reduction—setting a benchmark for peers to follow.
