More than half of all companies listed on Britain’s leading stock index are now actively investing in restoring forestry, a new report has revealed.
Research by the global insurance group Chaucer found the collective ESG programme of the biggest 100 businesses in trading in the UK has now been responsible for 350million new trees. Commitments also exist to almost double that number, with a further 300million set to be planted.
24% of companies included in the study reported their involvement in such schemes was directly driven by a need to off-set carbon emissions, contributing to the $36billion spent by businesses on carbon credits in the decade to 2022, with more than 80% of that total raised since 2020. A small majority – 27% – were also taking steps to sequester carbon and increase biodiversity more generally, suggesting more and more firms are taking a holistic approach to reducing environmental impact.
‘Businesses are now investing considerable amounts in tree-planting projects, offsetting their carbon emissions in an attempt to tackle climate change,’ said Hayley Maynard, Head of Innovation at Chaucer which now offers insurance for ESG projects.’These initiatives can cost millions to set up and maintain, take a long time to become established and represent significant investments of both time and money. Appropriate insurance coverage can safeguard both.
‘Our Carbon Purchase Protection Cover, developed with our partner Kita is a milestone in environmental insurance. If we want more businesses to invest in tree-planting and carbon-capture projects, we must help them make the investment without fearing risks beyond their control,’ she continued. ‘These critical tree planting projects are at risk from natural and human interference. Those investing in large-scale initiatives should ensure that their projects are sufficiently insured to protect both their investments and the environment.’