02 May AXA ENDING INSURANCE TO COAL-INTENSIVE BUSINESSES
Axa, one of the biggest European insurers recently announced they are ending insurance support to coal-intensive businesses, i.e. those with more than half of their turnover coming from mining or coal burning operations, Megan Darby at Climate Home reports.
The move will align Axa Insurance with its asset management arm which is removing over €170 million of coal holdings from its books.
In a statement, Axa said that most of the world’s fossil fuel reserves needed to stay in the ground in order to meet the target of well-below 2 degrees celsius temperature rise set out in the Paris Agreement. As such, assets like coal are at risks of becoming ‘stranded’ as the shift towards a low-carbon economy gets underway.
Despite this uplifting statement by Axa, Darby points out, a recent report by the consultancy Profundo found that 15 of the biggest insurance and reinsurance companies in Europe still have $130 billion invested in fossil fuels, with 11 of these still very much involved in underwriting high-emitting energy ventures.