AXA has announced several new milestones in its approach to the energy sector by strengthening its existing Oil and Gas exclusions, with a specific focus on unconventional activities and new greenfield explorations.
Firstly, AXA will stop investing in and underwriting new upstream oil greenfield exploration projects unless they are carried out by companies with the most far-reaching and credible transition plans.
The company already excludes all new direct investments in listed equities and corporate bonds in developed markets in Oil and Gas companies operating in upstream or oilfield services or downstream subsectors, as well as most midstream players.
But from 2023, AXA will apply the same selection process for its underwriting business of new insurance coverage on new upstream oil greenfield exploration projects.
Additionally AXA plans to significantly reduce its investment and insurance exposure to unconventional exploration and production from its business from 2022, as follows:
This includes extending the scope of its Artic investment and underwriting restrictions beyond the Arctic circle, while strengthening the thresholds applicable to both its investments and insurance activities in this particularly fragile region.
AXA will also adopt a more stringent policy on oil sands by ceasing direct investments in companies producing more than 5% of the worldwide volume of oil sands, and it will no longer directly invest r provide insurance to companies deriving more than 30% of their production from fracking or shale Oil and Gas.
Lastly, the firm will continue to intensify its investments in green and low-carbon energies, and has increased its green investment target to €26 billion by 2023.
“The climate emergency requires us to step up our actions and support the transition towards a low-carbon economy. The unprecedented and complex transformation needed can only happen by enabling companies from the energy sector to implement ambitious transition plans,” said Thomas Buberl, CEO of AXA.
“Going forward, AXA is determined to focus its support only on actors with the most far-reaching and credible transition strategies. With over 10 years of experience and a long-standing commitment to adapt its business and leverage its strengths in the fight against climate change, AXA continues to tighten its investment and underwriting criteria, which are today among the most demanding in our industry,” Buberl continued.
“As the world enters a decisive decade in this fight, AXA aims to continue working and engaging with all the relevant players to deliver on its NetZero commitments, while continuing to support economies and societies in this unprecedented transformation.”
