Transition plan for climate change mitigation

Vienna Insurance Group developed a transition plan for climate mitigation in the 2024 reporting year. This plan sets out how emissions will be reduced to net zero by 2050 for the spheres of impact “underwriting”, “asset management” and “operations” from the VIG sustainability programme.

Steps on the path to decarbonisation

2023 – Base year

Starting point

The greenhouse gas emissions from the base year 2023 serve as a starting point for measuring progress.

Underwriting^*

approx. 680,000 tonnes of CO₂e

Asset Management

approx. 1,220,000 tonnes of CO₂e^**
approx. 40 kilograms of CO₂e/m^{2 ***}

Operations

approx. 40,000 tonnes of CO₂e

2030

Interim target

30% reduction in emissions

VIG has defined as an initial milestone an approximately 30% reduction in CO₂e emissions compared to the base year by 2030.

Underwriting^*

approx. 490,000 tonnes of CO₂e

Asset Management

approx. 870,000 tonnes of CO₂e^**
approx. 28 kilograms of CO₂e/m^{2 ***}

Operations

approx. 30,000 tonnes of CO₂e

2050

Target

Emission reduction to net zero

In line with the Paris Agreement, VIG aims to reduce greenhouse gas emissions in selected portfolios to net zero by 2050.

* Corporate portfolio
**Corporate bonds and equities and other non-fixed-interest securities
*** Real estate

The transition plan is based on the VIG sustainability programme. It is of central importance to VIG’s business activities and is embedded in the Group’s governance structure.

Through the transition plan, VIG aims to reduce absolute greenhouse gas emissions in line with the Paris Agreement. To this end VIG has elected to follow a scientifically based net-zero path as a reference for its objective and has chosen the Net Zero 2050 scenario developed by the Network for Greening the Financial System (NGFS), which is in line with the objective of limiting global warming to 1.5 degrees Celsius through strict climate guidelines and technological innovations.

Based on this scenario, the transition plan defines science-based targets and is focused on the corporate portfolio in underwriting, on corporate bonds and equities and other non-fixed-interest securities in asset management, and on VIG’s internal operations.

In the reporting year, part of VIG’s real estate portfolio was also included in the transition plan. The CRREM pathway used in the real estate industry was used as the reference scenario, and is also in line with the 1.5-degree target. Unlike the other portfolios included, emissions are measured and the relevant targets are set in intensities (kg CO₂e/m²).

The reduction targets for the selected portfolios apply at Group level and are assigned to the individual Group companies. The greenhouse gas emissions from the base year 2023 serve as a starting point for measuring progress. Based on the selected NGFS scenario, the path to achieving net zero by 2050 requires an absolute reduction in greenhouse gas emissions (CO₂e) for selected portfolios of approx. 30% (compared to the base year 2023) by 2030. This target applies to the corporate portfolio and the corporate bonds and equities and other non-fixed-interest securities portfolio, as well as internal operations.

For the real estate portfolio, VIG has set a relative reduction target of 30% by 2030 (starting from the base year 2023). This interim target is currently not aligned with the 1.5-degree target due to limited steering possibilities.

More details can be found in the chapter “Disclosure Requirement ESRS E1-4” of the Group management report.

Decarbonisation levers

Key decarbonisation levers have been identified for each sphere of impact. These serve as a guidance and create the framework for tangible measures, both at the level of the individual Group companies and at property level (e.g. investment title, issuer). The identified decarbonisation levers are shown in the following table for each sphere of impact: