IAG to Electrify Tool-of-Trade Fleet

IAG today announced it will transition its entire tool-of-trade fleet to electric vehicles (EV) and hybrid electric vehicles (HEV) by the end of FY30¹.

The fleet of more than 900 vehicles in Australia and New Zealand, spans the breadth of IAG's brands including NRMA Insurance, CGU Insurance, AMI and NZI. Each low-emission vehicle circulated into the fleet is likely to result in an average scope 1 emission reduction of 47% compared to the group's current internal combustion vehicles.

IAG Group Managing Director and Chief Executive Officer Nick Hawkins said:

"Our customers and communities play a vital role in helping secure a greener future for Australia and New Zealand. We must also play our part, and we are accelerating our efforts to understand and manage our own climate impact, seeing first-hand the effect climate change is having on our customers and direct business operations."

Transitioning our fleet to low-emission vehicles is an important step towards achieving our goal to become a net zero insurer by 2050.

Nick Hawkins

IAG Group Managing Director and Chief Executive Officer

"With more than 2.4 million fleet cars utilising Australian roads², it's important that fleet owners consider ways to support the transition to a low-carbon economy."

As part of the Australian fleet transition, IAG is installing domestic EV chargers into the homes of employees³ who adopt an EV as their tool-of-trade vehicle. This follows a year-long EV pilot program where IAG tested and validated EVs in rural and metro settings and identified barriers to ownership which included access to charging infrastructure.

The infrastructure will be provided and maintained by JET Charge, an Australian company with a growing presence in New Zealand. JET Charge Chief Executive Officer Tim Washington said:

"We are delighted to have formed an agreement with IAG to provide domestic charging infrastructure for their fleet in Australia. We know that fleets are looking for ways to electrify, and that infrastructure is a key barrier. Our end-to-end charging as a service (CaaS) solution demonstrates what running private charging networks look like at scale as we rapidly transition to net zero."

Car manufacturer Kia will provide both EV and HEV options across IAG's Australian fleet. Kia Australia Chief Executive Officer Damien Meredith said:

"Kia Australia is pleased to support IAG in its transition to an electrified fleet through the provision of electric and hybrid vehicles for their employees. As we pursue our own journey as a sustainable mobility solutions provider, we look forward to working with IAG to achieve our respective goals as their principal corporate fleet supplier."

In Australia, IAG has already transitioned 110 low-emission vehicles into its fleet, while in New Zealand, IAG started its fleet transition in 2021, and expects completion by the end of 2024.

Last month, IAG released its Climate Action Plan which includes updated FY30 emissions reduction interim targets and outlines its commitment to helping customers and communities in Australia and New Zealand adapt to a changing climate and support the transition to a net zero future.

To access IAG's Climate Action Plan, please visit: IAG-Climate-Action-Plan.pdf