Claims specialist Sedgwick has launched a carbon value calculator that quantifies the emissions of building repairs on UK property damage claims.
Developed by Sedgwick’s repair solutions division in the UK, the carbon value calculator identifies the environmental impact of each property claim and the related repairs by applying CO2 values to materials, labour and plant.
Building on existing tools used to analyse the price of repairs, the carbon value calculator assigns emissions on a granular per-line basis, helping insurers understand the cost of each repair — not just in pounds sterling, but in tonnes of carbon. As well as being able to quantify the carbon cost of an individual repair, the carbon value calculator measures and reports the impact across a portfolio of repairs for Sedgwick’s clients.
The carbon value calculator simplifies and automates the historically time-intensive task of measuring scope three emissions that Sedgwick and its clients need to report at scale. It has already been tested with key insurer clients’ repair programmes.
“This tool represents a milestone in the execution of Sedgwick’s ESG strategy and augments the financial certainty our repair solutions team already provides with complete transparency over environmental impact,” said Neil Gibson, Sedgwick CEO for the UK.
“Achieving net-zero as an industry requires collaboration and access to high-quality data, and the calculator empowers Sedgwick, our clients and the wider industry to achieve our carbon reduction goals.”
By providing a baseline for current emissions and instantly calculating the potential impact of greener materials and processes, insurers are empowered to make informed decisions around their chosen claims handling philosophies and evaluate practical changes to their suppliers and standards.
The data also simplifies carbon offsetting strategies and can provide the financial and environmental context needed to develop low-carbon policies or help customers evaluate the impact of opting for greener alternatives.
“The ability to offer customers low-carbon repair options gives our insurer clients a competitive edge and will be invaluable to benchmarking, improving, and demonstrating steps towards net-zero,” added Peter Wassell, technical director of Sedgwick’s UK repair solutions. “Our solution excels in offering functionality that aligns with our continued focus on development to incorporate emerging new materials that can lower emissions at scale.”