Brokers show lack of urgency towards net zero

In its second annual survey of brokers’ attitudes to net zero, the insurer found the number of broker firms that set a net zero target has risen slightly since last year, but lack of concern remains, particularly among smaller firms.

Only 10% of regional brokers, up from 5% last year, and 4% of provincial brokers, have made a net zero commitment.

For the second year running, Ecclesiastical’s research suggests the main barrier to setting a target is that 51% of brokers do not currently have the resources to focus on net zero.

No interest

This year’s survey saw an increase in the number of brokers who said their firm has no interest in being net zero, from 21% to 27%.

This rose to 31% among provincial brokers, but was not mentioned by national brokers.

There was also a noticeable increase in firms saying they are too small for net zero to concern them, rising from 3% to 12%.

Sleepwalking

Adrian Saunders, commercial director of Ecclesiastical, said: “These results show brokers are sleepwalking into the climate crisis, despite the urgent need for all industries to transition to net zero.

“There are some firms out there that get it and are investing in carbon reduction, but most brokers aren’t interested. Our results show they don’t see any competitive advantage in reducing their carbon impacts. However, there’s overwhelming evidence that customers are making greener choices and that trend is only set to accelerate.

“Our research found two in five brokers would like support to understand how they can reduce their climate impact. As an insurer committed to making a positive environmental impact, it’s important we help to build confidence among brokers so they can make more informed choices and expand the climate conversation to their customers.”

Positive signs

The survey did reveal some positive news with nearly three quarters of brokers agreeing that reducing their company’s climate impact is the right thing to do for the environment.

Two in five said their company is more aware of climate issues than 12 months ago.

There was also a small increase in brokers measuring their carbon footprint.

Reducing energy consumption at offices overtook reducing business travel as the most popular step to reduce climate impacts, which according to Ecclesiastical, is most likely in response to the challenging economic environment.

Other popular measures include increasing awareness among employees and switching to sustainable suppliers.

Supporting clients

The survey revealed that brokers are not being proactive in supporting their clients in the net zero transition, with only 12% of respondents believing clients are more likely to do business with brokers that are committed to reducing their climate impact.

Fewer than one in 10 are encouraging their clients to take action to reduce their climate impact, while only 4% said their firm offered products and services that supported carbon reduction.

The research also found only 13% of brokers believe clients are more likely to do business with insurers that are committed to reducing their climate impact.

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