Climeworks has signed a 10-year carbon dioxide removal agreement with Rothesay, the UK’s largest pension insurance specialist.
As long-term investors, insurance companies are in a unique position to take climate action, helping to scale important climate solutions and manage the impact of climate change. One such solution is high-quality carbon removal, which must be an essential component of net zero roadmaps in addition to emissions reduction efforts.
Rothesay, the UK's largest pension insurance specialist, has signed a 10-year carbon dioxide removal agreement with Climeworks. The agreement makes the insurer’s own operations over the next ten years net zero by 2030 and is another proof of companies’ increasing interest in securing long-term access to high-quality carbon removal: it is the fourth ten-year agreement for Climeworks within six months.
As part of its net zero strategy, UK insurer Rothesay chose Climeworks to remove its 2021-2030 expected unavoidable CO₂ emissions by the end of the decade. With this agreement, the company consciously moves towards high-quality carbon removals, enabled by Climeworks’ direct air capture and storage solution, one of the highest-quality removal solutions currently available on the market.
Long-term agreements like this ten-year agreement are crucial to help scale the market for carbon removal as it gives both sides planning security. Climeworks can better leverage market demand impact, while Rothesay secures longer-term access to carbon removal capacity, which is crucial since the availability of high-quality removals is scarce.
Rothesay is the first UK insurance company choosing Climeworks’ carbon dioxide removal service after a rigorous selection process. The insurer selected Climeworks because its carbon removal can be accurately measured and is characterized by the strongest standards of additionality and permanence while avoiding social and environmental harms.
“Rothesay is delighted to partner with Climeworks to remove the CO₂ produced by the day-to-day running of our business. As part of Our Pathway to Net Zero, we have conducted rigorous due diligence on our carbon removal options and have chosen Climeworks because its ground-breaking technology allows us to measurably neutralize the environmental impact of our operations. Like Rothesay, Climeworks is an innovative, purpose-built company that is delivering highly effective solutions for its clients and we look forward to a long-term partnership”, says David Land, Rothesay’s Head of Investment Strategy and chair of its Climate Change Working Group.
With its Pathway to Net Zero strategy Rothesay commits to achieving net zero by 2050 for its business including the investment portfolio. Rothesay has also committed to regular and transparent reporting on its progress to ensure accountability and has fully embedded climate risk management within its business.
In addition to the collaboration with Climeworks, Rothesay has also worked with Natural Capital Partners to both verify its direct emissions and purchase sufficient carbon offset credits, verified by Gold Standard and VERRA, to more than compensate for its historic direct emissions from the year 2020. In recognition of this, the insurer has received CarbonNeutral® company certification in accordance with The CarbonNeutral Protocol, a service of Natural Capital Partners, for the year 2020.