It’s hard to believe that the first Earth Day was celebrated in 1970 – 55 years ago – to bring awareness to the negative impacts of “modern life” on the environment, including pollution and the depletion of natural resources.
Credited with spurring the creation of the U.S. Environmental Protection Agency (EPA), and even the passage of laws such as the Clean Air Act, that historic event became the springboard to an international “Green Movement” that continues to this day, challenging conventional thinking and inspiring innovative, collaborative solutions for sustainable practices impacting nearly every facet of our lives.
From agriculture to transportation, and recreation to technology, sustainability isn’t an after-thought, it’s a starting point. So much so, the World Economic Forum has repeatedly pointed to the positive impacts to businesses which embrace sustainable goals.
In fact, prospective employees, customers and investors are taking notice of brands’ sustainability practices, and want to align with businesses that do more than “check the box.” According to McKinsey & Company, many consumers, especially Millennials and Gen Z, are placing a premium on sustainability, with a willingness to pay more for environmentally friendly products.
The rise of B2B companies prioritizing sustainability is gaining serious momentum too. Case in point, a global survey by Solera found that 75% of drivers are willing to switch insurance providers for a greener policy. While some companies might look at this finding as a challenge to overcome, it’s more aligned with a golden opportunity for insurance companies to prioritize sustainability goals and, contrary to popular belief, improve their bottom line.
Challenge vs. Opportunity: Turning Pressure into Progress
There is a misconception that sustainable solutions cost more. Regarding the auto claims and repair sector, for example, while 99% of insurers recognize the importance of prioritizing sustainability, they face seemingly large hurdles stemming from the misconception that it will require a larger budget to invest in sustainable solutions. By understanding the cost-reduction benefits associated with adopting sustainable practices, especially in auto claims and repair, this myth can be easily dispelled.
On a larger scale, sustainability is becoming a much heavier regulatory requirement with the E.U. Corporate Sustainability Reporting Directive (CSRD) now underway, requiring companies to report on sustainability, with a phased-in approach beginning in 2025.
Canada has also developed proposed regulations for capping carbon emissions from the oil and gas sector. After a period of public input, the Canadian government plans to finalize its plans in 2025, so that they may become a reality in the next years.
Good Intentions Only Go So Far
While demand for eco-friendly practices across the globe is certainly surging, good intentions alone will not suffice. The future is sustainable, so it’s imperative companies make moves toward sustainability, especially if they want to stay ahead of impending regulations. Fortunately, there are things that can be done to get a head start.
Small steps make up for a large outcome in the end. Start by implementing a recycling process or, even better, a paperless process altogether. This can help reduce waste while saving money and improving the user experience. Companies should also seek out for partnerships to help reduce carbon emissions and purchase carbon offsets. There are also tools available to improve measurement of metrics like Scope 3 emissions, which can make a huge difference in implementing effective carbon footprint monitoring initiatives.
Creating a Greener Claims Journey
Sustainable Estimatics is one such example, revolutionizing how auto insurers measure and reduce CO2 emissions throughout the claims touchpoints and supply chain.
By leveraging Solera’s vast automotive data repository, the platform provides measurable insight into the environmental impact of automotive repairs, from carbon footprint assessments to eco-friendly decision-making tools.
At Solera, sustainability is more than a commitment. It’s a deep and enduring responsibility to drive environmental change within the automotive sector, championing sustainable business practices on a global scale by leveraging innovation and technology for a greener, healthier future for all.
That is why Solera hosted Canada’s first Automotive Industry Sustainability Summit in partnership with Simplicity Car Care. That is why you’ll find Solera’s leadership immersed in some of the most dynamic gatherings of sustainability thought leaders, industry partners and government stakeholders like ClimateTech Connect, sharing insights on the role of technology and innovation in advancing climate resilience across our cities, states and communities.
At the end of the day, we’re on a quest for innovation that drives authentic impact. The importance – and urgency – of these solutions cannot be understated. Our team is more motivated than ever to continue innovating and determined to lead the charge in sustainability, now and into the future. We’re on a quest to ignite the next frontier of sustainability and we invite you to come along for the ride! To learn more, visit https://www.claims.solera.com/products/sustainable-estimatics/