AXA Group has announced that its sustainability and climate strategy will be extended to AXA XL, the division that was established following the acquisition of XL Group.
The move will see AXA XL, which focuses on large property and casualty (P&C) Commercial Lines, implement the Group’s Corporate Responsibility policies, including those that relate to tobacco, climate change and controversial weapons.
In line with the sustainability strategy, AXA XL will apply underwriting and investment restrictions to business related to the construction and operation of coal plants, coal mines, oil sands extractions and pipelines, as well as arctic drilling.
The restrictions will apply to over €100 million of AXA XL’s gross written premiums and will constitute a roughly €660 million divestment.
The decision was announced by AXA CEO Thomas Buberl at a UNEP FI Global Round Table preceding the launch of the 4th Climate Finance Day in Paris.
“To tackle climate change, we must use every lever possible,” said Buberl. “This means implementing an ambitious strategy everywhere we can. This is why I am very proud to onboard AXA XL into adopting our sustainability strategy.”
AXA also announced its support for the UN Principles for Sustainable Insurance’s launch of the PSI Climate Ambition Coalition, effective from 2019.
Members of this coalition will commit to actions on decarbonisation and climate resilience in their insurance and investment activities, as well as raising their climate ambition in line with the Paris Agreement.
“Above all, our conviction has always been that the fight against climate change requires collective action,” Buberl continued, “therefore AXA is happy to support the future UN PSI Climate Ambition Coalition.”