Carbon offsetting
As the first insurer to make our global operations carbon neutral, Aviva has worked hard to calculate its worldwide carbon dioxide emissions, which totalled 125,400 tonnes in 2006 (we add 5% to our emissions total when purchasing offsets to allow for any margin of error), and to research how carbon neutrality can best be achieved to reflect the company’s needs and values.
To do this, we offset our outstanding carbon emissions by retrospectively investing in projects that generate carbon credits, either through carbon mitigation or renewable energy.
The schemes, administered by carbon brokers ClimateCare and CarbonAided, are a balance of commercial and social projects, and include:
- biogas projects in Sri Lanka
- human-powered treadle pumps, vital for irrigation in rural areas like Uttar Pradesh, India
- wind turbines in Hebei Province, China, and Tamil Nahdu, India
- ‘green’ cement in the Netherlands and Ireland
- more efficient wood-burning stoves in Africa.
Case study
Biogas
The biogas project that Aviva sponsors is located in a rural community in Sri Lanka, and run by the charity Practical Action.
The project replaces wood, a fuel source that is becoming increasingly expensive and scarce, with biogas, which is generated from cow manure and water. The fermentation process releases methane, which is then stored and piped to homes to be used as a free, sustainable source of energy for cooking and lighting.
The biogas also reduces the risk of indoor air pollution, one of the biggest killers in the world, and enables the women usually responsible for collecting wood to spend more time on new, income-generating activities.
Aviva’s involvement in the project generates 3,000 tonnes of carbon credits.
Case study
Treadle pumps
In Uttar Pradesh, northern India, a large percentage of the population live below the poverty line. Irrigation is vitally important to crop production in the area, but fuel for diesel pumps is both expensive and polluting, and the pumps themselves cost 70-100 Rs per hour to rent. Aviva is involved with a project that promotes the use of human-powered treadle pumps, a cost-effective and non-polluting alternative.
The treadle pumps are usually operated in the early morning and in the evening to avoid the scorching heat of the day, and for three to seven hours a day, depending on the season. The pump can be operated in shifts by entire families, and can form the centre of social activity.
Being able to use treadle pumps at any time, and irrigate their fields daily, has had a spectacular impact on the income of farmers in the region. In one sample, rural households more than doubled their income, from an average 15,000 Rs per household per year to 35,500 Rs per household per year.
Case study
Wind turbines
The growth in the economies of China and India are having a rapidly growing impact on climate change, and although China is still building coal-fired power stations, it is also using hydro-electricity stations and wind turbines to help meets the growing demand for energy. In fact, it is expected to reach its 2010 wind power capacity target of 5GW by the end of 2008.
Aviva sources credits from a wind turbine project located in Hebei Province, 250 kilometres north of Beijing. It is one of the windiest places in the country, and also the latest province that we have won a licence to operate in, under the Aviva-COFCO partnership. As China is an emerging market for businesses and many of the products we source are manufactured there, it is an ideal way of supporting a drive to a low-carbon economy.
The majority of electricity in India is generated from coal and oil, which carry the associated problems of air pollution and emissions. Our wind turbine project is on a smaller scale and is situated in Tamil Nahdu state. The turbines are manufactured in India, and Indian investors and engineers are driving the project forwards.
Between the two projects, Aviva has sourced 59,000 carbon credits.
Case study
‘Green’ cement
Cement production is the world’s second-largest stationary source of CO2 emissions after energy generation, creating 932 million tonnes of CO2 per year.
Aviva has chosen to offset some of its CO2 emissions through two projects, in the Netherlands and in Ireland, that provide a substitute to conventional ‘Portland’ cement. This ‘green’ cement is made from the by-product of iron and steel production, and results in emissions of 0.8 tonnes of CO2 per tonne of cement less than conventional cement-making methods.
The project, from which Aviva has sourced 30,000 tonnes of carbon credits, has won a sustainability award in Ireland.
“Aviva works in regions where it has a presence or where there is an urgent need for carbon finance. Through funding sustainable development projects, Aviva is giving back to communities as well as making real emissions reductions. As a result of our partnership, we are developing new, innovative projects on Aviva’s behalf in India and Africa.”
David Wellingtonmanaging director, ClimateCare
“While we’re offsetting those emissions that cannot be reduced, this is not a ‘silver bullet’ solution. We need to increase efforts to limit the emissions we create, through the way we manage and use our buildings, and by reducing business travel or choosing more responsible travel options.”
Zelda Benthamgroup environment manager, Aviva