AXIS to phase out thermal coal business

AXIS Capital Holdings Limited has announced changes to its fossil fuel underwriting and investment policy, including phasing out thermal coal.

The moves to “support the transition to a low-carbon economy” will see the business eliminate thermal coal from its insurance, facultative reinsurance, and investment portfolios by 2030 in OECD countries and the EU and 2040 globally.

The policy continues to include provisions supporting renewable energy projects and companies that are transitioning business models away from thermal coal and oil sands. These measures are also in addition to previously announced restrictions on activities in the Arctic National Wildlife Refuge.

The company added that it was investing $20 million in BlackRock’s Climate Finance Partnership (CFP), a fund focused on climate infrastructure investments in emerging markets.

“It is our belief at AXIS that the (re)insurance industry needs to move to the forefront of the efforts to transition to a low-carbon economy. Today’s actions reflect the determination and commitment of our team to contribute to positive environmental change,” said Albert Benchimol, AXIS President and CEO.

Conrad Brooks, General Counsel of AXIS, added: “We are very proud to announce these enhancements, but much work still remains. We’re committed to building on these actions and growing our efforts to help create a more sustainable future. We look forward to engaging with talent and collaborating with companies that share our beliefs and values.”