IAG to transition tool-of-trade fleet to electric and hybrid vehicles by FY30

IAG has announced plans to transition its entire tool-of-trade fleet to electric vehicles (EVs) and hybrid electric vehicles (HEVs) by the end of the fiscal year 2030. The move is part of IAG’s broader strategy to reduce its carbon footprint and contribute to a greener future for Australia and New Zealand.

The transition involves more than 900 vehicles across IAG’s brands, including NRMA Insurance, CGU Insurance, AMI, and NZI. Each low-emission vehicle introduced into the fleet is expected to achieve an average 47% reduction in scope 1 emissions compared to the current internal combustion engine vehicles.

As part of this transition, IAG is also installing domestic EV chargers at the homes of employees who opt for an EV as their tool-of-trade vehicle. This step follows a successful year-long EV pilot program that tested vehicles in both rural and metropolitan settings and identified infrastructure challenges, such as access to charging stations. The domestic charging infrastructure will be provided and maintained by JET Charge, an Australian company that is expanding its presence in New Zealand.

Kia will serve as the principal corporate fleet supplier for IAG in Australia, providing both electric and hybrid vehicle options for IAG employees. This partnership supports Kia’s goal of becoming a sustainable mobility solutions provider.

IAG’s fleet transition has already begun, with 110 low-emission vehicles integrated into its Australian fleet. In New Zealand, the transition started in 2021, with completion expected by the end of 2024.

This initiative aligns with IAG’s recently released Climate Action Plan, which includes updated FY30 emissions reduction targets and reinforces the company’s commitment to helping customers and communities adapt to climate change and work towards a net-zero future.