Convex has reportedly become the forty-third insurer to refuse coverage for the Adani Group’s Carmichael coal mine in Australia.
The project has been called ‘disastrous’ and a ‘climate-wrecking coal mine’ by environmental protestors. According to the group Market Forces, Convex was one of the few remaining specialty insurers to not rule out supporting the project.
In a statement posted to its website, Convex said: “Client confidentiality is a fundamental principle at Convex and, as such, it is our policy, along with many other financial institutions, not to comment publicly about our clients or any specific risk. However, we feel obliged to correct inaccurate and misleading information concerning our alleged involvement in a new coal mine in Australia, which has been published both on social media and copied, unchecked, in certain media outlets. Unfortunately, this campaign has the potential to unfairly affect a number of our environmental and sustainability partners, connected with the recently announced Convex Seascape Survey.”
It added: “Therefore, we would like to confirm that, in line with our ESG policy, we will not insure the construction or operation of any new thermal coal mine and/or its dedicated infrastructure.”
Market Forces also released a statement about Convex ruling itself out of covering the Adani mine. That statement gave a little more clarity about the situation.
It read: “Adani’s Carmichael coal project has triggered a mass exodus of insurers and financiers who are unwilling to support new thermal coal mines due to their contribution to climate change. Convex is the 43rd insurer to rule out underwriting of Adani’s mega mine that will produce 4.6 billion tonnes of carbon pollution and open the largest new coal basin in the world, the Galilee Basin in central Queensland. In total, 108 major companies have publicly rejected Carmichael.”
The operators behind the Carmichael mine have been digging for coverage around the world. In October, Swiss Re and Munich Re ruled themselves out of supporting the project, following similar moves by AXIS Capital and Fidelis in October 2019 and December 2020. In December 2018, ten insurers and reinsurers ruled themselves out of working with the project. The lack of insurance for the project and other related projects has meant that the construction companies have led firms approaching the Australian government directly for coverage.
Edoardo Riario Sforza, a campaigner with Market Forces, said: “Every insurance company on Earth should be running a mile from Adani’s climate-wrecking coal mine. The fact there are now 43 major insurers on the public record saying they won’t touch the Carmichael project demonstrates the reputational risk any company associated with it faces.”
He added: “Now all eyes are on Helvetia Group and Lloyd’s of London. Helvetia needs to clarify its current and intended future relationship to the Adani Carmichael project, while Lloyd’s must now confirm that no syndicate of the Lloyd’s market will issue new, or renew existing, insurance for the Adani Carmichael coal mine and associated infrastructure.”
