Aviva chief executive Amanda Blanc has vowed to maintain the insurer’s climate transition plans despite growing political pushback against net zero targets in the US and UK.
Speaking as Aviva’s shares hit their highest level since the 2008 financial crisis, Blanc said extreme weather risks made climate action a business imperative as well as a client priority.
“We remain committed to our ambition,” she told reporters on Thursday. “It’s an important priority for many of our clients, but also vital given the rise in extreme weather events and the impact they have on the insurability of properties.”
Blanc, who was made a dame in 2023 partly for her work on net zero, pointed to recent wildfires in Canada and floods in the UK as examples of climate-related events insurers must account for.
Her comments come amid a wave of withdrawals from the UN-backed Net-Zero Banking Alliance following Donald Trump’s return to the White House, including US giants JPMorgan, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs, as well as UK lenders HSBC and Barclays.
The exits have divided the financial sector. Standard Chartered CEO Bill Winters last month criticised rivals for embracing climate commitments when it was “fashionable” only to roll them back. “Shame on them,” he said.
Aviva published an updated net zero transition plan earlier this year, targeting a 90% cut in operational emissions by 2030 compared to 2019 and committing to source all electricity from renewables. Blanc said reducing emissions linked to clients was “more complex” but remained under review.
“The important thing for us is to offer optionality for investors, customers and funds, while considering the practical impact for our insurance business,” she added.
The insurer reported a 22% rise in operating profit to £1bn for the six months to June, up from £875m a year earlier, driven by growth in general insurance premiums in the UK and Ireland and increased assets in its wealth business. Shares rose as much as 4.7% to £6.90 before closing 2.6% higher at £6.75.
Rival insurer Admiral also saw its shares jump nearly 6% after posting a 67% surge in half-year profits to £516m, aided by strong performance in its UK car insurance division.
