AA

How ethical and sustainable is AA?

The Good Shopping Guide’s Ethical Insurance Ratings Table includes AA car insurance. The insurance provider has yet to fulfil our ethical criteria, but we hope that in the future the brand will make changes to function as a more ethical insurance company. AA would be able to boost customer confidence and obtain specific ethical suggestions by requesting Ethical Accreditation from The Good Shopping Guide.

The Good Shopping Guide to Ethical Insurance Companies has more information on the importance of Ethical Insurance. Then, in our Ethical Insurance Rating Table, compare it to other insurance providers.

What does AA do?

The AA was founded in 1905 beginning to help motorists in response to driving restriction enforcement, ensuring that everyone on the roads was staying safe. The AA provides breakdown cover and car insurance.

In 2020 AA accepted a takeover by two private equity firms, TowerBrook Capital partners and Warburg Pincus with the sale completing in 2021.

For which criteria does AA perform poorly? 

AA receives a low rating for its Political Donations; the brand’s two parent companies collectively donated millions of dollars in recent election cycles.

AA also receives a bottom rating for Other Irresponsible Lending, due to controversial investments in fossil fuel companies made by its parent company, Warburg Pincus.

In what areas does AA score well for its ethics?

AA receives a high rating for Carbon Disclosure & Reduction Targets. This is a result of AA’s ESG Report, which demonstrates transparency by disclosing its Scope 1, 2 and 3 emissions and including goals to have Net Zero emissions by 2050.

AA also receives no criticisms for Environmental Destruction, as the company was not found to be funding in any environmentally destructive projects, which can include fossil fuel expansion or mining projects.

How can AA improve its ethical rating?

AA could improve its Responsible Investment Policy by tightening its restrictions on investments in controversial industries. The brand would also improve its ethical status if its parent companies reduced all Political Donations and re-evaluated their links to armaments and fossil fuel companies.

AA could apply for Ethical Accreditation to receive more specific advice on how to become ethical and one of the best insurance companies. The Ethical Rating of a brand is divided into three categories by The Good Shopping Guide: the Environment, Animals and People, and assesses how a company considers these within its practices. More information about how we research may be found here.

If you work for or with an insurance firm that ranks ethics high on its priority list, why not start your Ethical Accreditation process with The Good Shopping Guide? This certification of sustainability and ethics has benefited insurance providers including Aviva and ETA.

Sustainability, ethics and corporate social responsibility for Insurance companies

If you work for or with an insurance firm, why not start your Ethical Accreditation process with The Good Shopping Guide? If you work for or are in charge of an Ethical Insurance firm and would like to learn more about having your brand verified and accredited, please fill out an Initial Sustainability & Ethics form. With this brief form, your certification application is started!  Contact us if you have any questions about the advantages of Ethical Accreditation for your company.