Insurance Australia Group (IAG) has unveiled plans to transition its entire tool-of-trade fleet to electric vehicles (EVs) and hybrid electric vehicles (HEVs) by the end of fiscal year 2030.
This ambitious initiative encompasses over 900 vehicles across IAG’s brands, including NRMA Insurance, CGU Insurance, AMI, and NZI, in both Australia and New Zealand.
The transition is expected to yield significant environmental benefits, with each low-emission vehicle projected to reduce scope 1 emissions by an average of 47 per cent compared to the current internal combustion engine vehicles.
Nick Hawkins, IAG Group Managing Director and CEO, emphasised the company’s commitment to addressing climate change and its impact on customers and business operations.
As part of this transition, IAG is implementing a comprehensive infrastructure plan.
The company will install domestic EV chargers in the homes of employees who opt for EVs as their tool-of-trade vehicles.
This decision follows a year-long pilot program that tested EVs in both rural and metropolitan settings, identifying charging infrastructure as a key barrier to adoption.
JET Charge, an Australian company expanding into New Zealand, has been selected to provide and maintain the charging infrastructure.
Tim Washington, CEO of JET Charge, highlighted the importance of infrastructure in facilitating large-scale fleet electrification.
Kia has been chosen as the principal corporate fleet supplier for IAG in Australia, offering both electric and hybrid vehicle options.
IAG has already made significant progress in its fleet transition. In Australia, 110 low-emission vehicles have been integrated into the fleet.
The New Zealand operations began their transition in 2021 and are expected to complete it by the end of 2024.
This fleet electrification initiative aligns with IAG’s recently released Climate Action Plan, which outlines updated emissions reduction targets for FY30.
The plan reinforces IAG’s commitment to helping customers and communities adapt to climate change and work towards a net-zero future.
The move by IAG, as one of Australia’s largest insurers, sets a significant precedent in the corporate sector’s response to climate change.
It demonstrates a tangible step towards reducing carbon emissions and promoting sustainable practices in the insurance industry.
