AXIS Capital Support Low-Carbon Economy
AXIS Capital Holdings Limited announced a new policy addressing thermal coal and oil sands-related underwriting and investments.
The policy is a component 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.
The program focuses on four key areas: environment, diversity & inclusion, philanthropy and advocacy.
The company said that the “new thermal coal and oil sands underwriting and investment policy, effective January 1, 2020, addresses:
Underwriting:
- AXIS will not provide new insurance or facultative reinsurance for the construction of new thermal coal plants or mines and their dedicated infrastructure or oil sands extraction and pipeline projects and their dedicated infrastructure; or to companies that generate 30% or more of their revenues from thermal coal mining, generate 30% or more of their power from thermal coal, or hold more than 20% of their reserves in oil sands.
- Renewals will be considered on a case-by-case basis until January 1, 2023. Exceptions to this policy may be considered on a limited basis until January 1, 2025 in countries where sufficient access to alternative energy sources is not available.
Investments:
- AXIS will not make new investments in companies that generate 30% or more of their revenues from thermal coal mining, that generate 30% or more of their power from thermal coal, or that hold more than 20% of their reserves in oil sands.
“We believe insurers have an important role to play in mitigating climate risk and transitioning to a low-carbon economy,” said Mr. Benchimol. “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.”
Added Mr. Brooks, “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.”
Wonderful refreshing news! What about our local insurance companies? Argus, BFM, Colonial, ACE, XL…we would like to see you all follow suit!
Congratulations to AXIS for leading the way with this new low-carbon policy! And for declining to get involved with underwriting Adani’s controversial Carmichael coal mine in Australia. Let’s hope AIG does the same.