Global claims management and loss adjusting firm Sedgwick has unveiled new findings highlighting the carbon impact of insurance-related domestic building repairs in the UK. According to Sedgwick’s analysis, such repairs, which typically cost around £8,000, generate an estimated 1,496.6 kg CO2e – comparable to the emissions of an average petrol car driving 9,131 miles.
The data, drawn from Sedgwick’s managed contractor network during the first half of 2024, also revealed that for every £7.80 spent on domestic building repairs, approximately 1 kg of CO2e is produced. This marks the first time the industry has been able to accurately estimate the carbon footprint associated with property claims repairs.
The estimates were arrived at through Sedgwick’s proprietary carbon value calculator, an in-house tool that meets Greenhouse Gas Protocol standards. Launched in December 2023, the calculator is integrated into Sedgwick’s digital cost-estimating tools and automatically assigns carbon emission values for each repair line item.
Last year, insurers paid out £2.55 billion on home insurance claims, according to the Association of British Insurers. Based on Sedgwick’s average carbon emissions of 1,496.6 kg CO2e per £8,000 claim, the total carbon footprint of those claims is approximately 326,504 tonnes CO2e. To offset this, the industry would need to spend around £9.8 million on carbon credits, priced at £30 per tonne in today’s market.
Sedgwick’s analysis also identified that repairs for flood and EOW (escape of water) are among the highest contributors to carbon emissions.
Graphical depiction of the cost calculation to offset carbon emissions on different types of domestic building repairs, based on today’s price of £30 per T CO2e
It was noted that substituting traditional materials with alternatives like hemp insulation and graphene paint could cut carbon emissions by 4.03%, with a minimal cost increase of 0.73%. Additionally, resilience repairs that involve less material removal and remote drying techniques could reduce carbon emissions by up to 30%.
“Establishing the baseline for carbon emissions in insurance-related building repairs is the first crucial step towards achieving carbon neutrality across the industry,” asserted Peter Wassell, technical director of Sedgwick’s UK repair solutions. “More work must be done to promote sustainable repair programmes, and we can now provide tangible evidence of the measurable benefits they deliver.”
Meanwhile Sedgwick UK chief executive Neil Gibson added: “Our high-performing carbon value calculator is an in-house proprietary innovation that showcases our commitment to leading and promoting sustainable claims management practices. The calculator’s day-to-day application provides clients with the support they need to document carbon emission savings at no additional cost.
“We are currently working with several clients to provide data that can help set baselines for carbon emissions in both commercial and domestic property repairs. This level of collaboration supports Sedgwick’s goal of achieving carbon net-zero status by 2030.”
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