AXIS Capital Holdings has launched a new policy aimed at reducing and ultimately cutting its business ties with companies involved in high carbon emitting businesses.
From January 1, 2020 AXIS will not provide new insurance or facultative reinsurance for the construction of new thermal coal plants or mines or their dedicated infrastructure, or oil sands extraction and pipeline projects and their dedicated infrastructure. Companies that generate 30 percent or more of their revenues from thermal coal mining, or 30 percent or more of their power from thermal coal, or hold more than 20 percent of their reserves in oil sands, will suffer the same exclusion.
It will consider renewals on a case-by-case basis until January 1, 2023, with exceptions to this policy considered on a limited basis until January 1, 2025 in countries where there is insufficient access to alternative energy sources.
AXIS also committed not to make new investments in companies that generate 30 percent or more of their revenues from thermal coal mining, 30 percent or more of their power from thermal coal, or more than 20 percent of their reserves in oil sands.
The policy is part of a broader corporate citizenship program led by AXIS general counsel Conrad Brooks, and overseen by AXIS president and CEO Albert Benchimol and the corporate governance and nominating committee of the AXIS board of directors.
Benchimol said insurers have an important role to play in mitigating climate risk and transitioning to a low-carbon economy. “This policy is in line with our broader strategies such as reducing investments in lines that do not align with our long-term approach; investing in growth areas, such as renewable energy insurance where we are a top five global player; and growing our corporate citizenship program, a core focus of which is creating a positive environmental impact.”
Brooks added: “We strive to ensure that every business decision we make is guided by our corporate values, and we believe this new thermal coal and oil sands policy is the right thing to do for our planet and our business.”
AXIS Capital, Albert Benchimol, Conrad Brooks