👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Insurer AXA tightens oil & gas policy ahead of COP26 summit

Published 29/10/2021, 15:38
© Reuters. FILE PHOTO: The logo of French Insurer Axa is seen outside a building in Les Sorinieres near Nantes, France, May 4, 2021. REUTERS/Stephane Mahe
AXAF
-
FTNMX601010
-

By Sudip Kar-Gupta and Simon Jessop

PARIS (Reuters) -AXA, France's biggest insurer, said on Friday it would tighten its policy regarding investing in and insuring the oil and gas sector, as pressure builds on finance to help curtail new production.

The announcement, which comes before global leaders meet for the COP26 climate summit in Scotland, follows growing calls from bodies including the United Nations for new fossil fuel projects to be stopped in order to help cap global warming.

AXA said it would stop investing in and underwriting new upstream greenfield oil exploration projects unless they were carried out by companies "with the most far-reaching and credible energy transition plans".

This would see it avoid new direct investments in listed equities and corporate bonds in developed markets in oil and gas companies operating in upstream, oilfield services, downstream subsectors and most midstream players, it said.

From 2023, AXA would begin to factor the policy into its underwriting business of new insurance coverage on new upstream greenfield oil exploration projects, it added.

“The climate emergency requires us to step up our actions and support the transition towards a low-carbon economy," said AXA Chief Executive Thomas Buberl.

"Going forward, AXA is determined to focus its support only on actors with the most far-reaching and credible transition strategies.”

It also increased its target for "green" investments to 26 billion euros ($30.3 billion) by 2023, from 24 billion announced at the end of 2020.

Peter Bosshard, coordinator of the Insure Our Future campaign, said: "In principle it's positive that the insurance industry is now finally starting to shift away from oil and gas.

© Reuters. FILE PHOTO: The logo of French Insurer Axa is seen outside a building in Les Sorinieres near Nantes, France, May 4, 2021. REUTERS/Stephane Mahe

"But self-proclaimed climate leaders need to follow the science and rule out all support for the expansion of fossil fuel projects right away," Bosshard said.

($1 = 0.8589 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.