AXA has announced that it is strengthening its existing oil and gas exclusions amid the rising pressure to curb the climate crisis and COP26 climate summit.
French insurance giant’s latest move is focused on ‘unconventional activities and new greenfield explorations.’
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AXA has said it will not make new direct investments in listed equities and corporate bonds in developed markets in oil and gas firms operating in upstream, oilfield services, downstream subsectors, and most midstream players.
Considering the Science-Based Targets initiative (SBTi) framework as it becomes available, AXA will stop underwriting new upstream oil greenfield exploration projects.
AXA CEO Thomas Buberl said: “The unprecedented and complex transformation needed can only happen by enabling companies from the energy sector to implement ambitious transition plans. Going forward, AXA is determined to focus its support only on actors with the most far-reaching and credible transition strategies.
“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 Net-Zero commitments, while continuing to support economies and societies in this unprecedented transformation.”
From 2022, AXA plans to reduce its investment and insurance exposure to unconventional exploration and production.
Furthermore, it plans to invest heavily in carbon-neutral projects. The insurer has increased its green investment target from €24bn in 2020 to €26bn in 2023.
