nib sets pathway to net zero by 2040

nib Group (nib) said today it has set progressive, science-based targets to achieve net zero carbon emissions by 2040, supporting global efforts to transition to a net zero future.   

nib Group Executive, Legal & Chief Risk Officer, and executive responsible for sustainability, Roslyn Toms, said this commitment is an essential part of delivering on nib’s purpose of your better health and wellbeing. 

“Climate stability has an impact on the health and wellbeing of our members, our community and society,” Ms Toms said. “We know we have an important role to play as a business to reduce our impact on the environment, a key pillar of our sustainability principles,” she said. “Our net zero targets align with the Paris Agreement to keep global warming well below 2°C and pursue efforts of 1.5°C.” 

nib’s emissions reduction roadmap, outlined in its 2022 Taskforce on Climate-Related Disclosures Report, released 30 September 2022, includes:  

• a 50% reduction in Scope 1 & 2 emissions by 2030[1]

• a 25% reduction in Scope 3[2] emissions by 2030[3]

• achieving net zero by 2040 

nib has already achieved one of its near-term targets. “We’ve reduced our combined Scope 1 and 2 emissions by 93% between FY21 and FY22, surpassing our target of a 50% reduction by 2030,” Ms Toms said. 

“This was largely achieved through transitioning to 100% renewable energy use at all nib-controlled offices.” 

In 2019, nib appointed external managers to manage the funds in its $1.17 billion investment portfolio. The managers’ mandate includes a strong commitment to exclude companies whose primary business is in carbon intensive fossil fuels. 

As part of nib’s targets, 25% of nib’s in-scope investment portfolio must have science-based targets to achieve net zero emission by 2027, and 100% by 2040.[4] 

“We are conscious that in order to achieve our goals we need to work with partners, suppliers, employees, and investment managers,” Ms Toms said.  

In 2022, nib also purchased 7,000 high- integrity Australian carbon credits to offset its previous year’s emissions, including purchasing credits from the Aboriginal Carbon Foundation. Chief Executive Officer, Rowan Foley, said the project nib investment in, the Karlantijpa North Savanna Burning Project, aims to reduce carbon emissions through low-rainfall savannah burning.  

“Beyond its environmental impact, the project also improves land access for Traditional Custodians, provides education and employment opportunities, strengthens the local economy, facilitates knowledge sharing, and helps maintain the Mudbarra language,” Mr Foley said.  

One specific measure nib took during the year in its own business includes partnering with Renew It to divert 100% of legacy IT hardware from landfill to recycling, when the equipment cannot be re-used, Ms Toms said. 

nib will review and update its path to net zero, and its roadmap to get there on an annual basis. 

“This ensures our plans are aligned with the latest climate science and what’s happening in Australia, and internationally,” Ms Toms said.  

For further information, nib’s 2022 Sustainability Report can be found here and the Inaugural 2022 Task Force on Climate-Related Disclosures Report is here. 

[1] From a FY21 baseline
[2] Excludes investments
[3] From FY20 baseline
[4] Investment types in-scope for setting science-based targets that nib holds are corporate bonds which represent 6% of nib’s total investments. All other investments nib holds are investment types out of scope or optional as defined by the Science-Based Targets Initiative.