Axis charts exit from thermal coal business
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Axis Capital Holdings Ltd. said Wednesday it will stop insuring, reinsuring and investing in thermal coal business by 2030 in some countries, including the United States, and by 2040 globally.
The Bermuda-based insurer and reinsurer also said it will invest $20 million in an emerging markets-focused climate finance fund managed by BlackRock Inc.
Thermal coal business will be phased out from the company’s insurance, facultative reinsurance and investment portfolios with all such activities ending no later than 2030 in Organization for Economic Cooperation and Development countries and the European Union, Axis said in a statement.
The policy includes thermal coal developers, but Axis will continue to support renewable energy projects and companies that are transitioning business models away from thermal coal and oil sands.
Earlier this year Axis said that it will not provide coverage or investment support for projects related to exploration, drilling or production of oil or gas in the Arctic National Wildlife Refuge in Alaska.
“It is our belief at Axis that the (re)insurance industry needs to move to the forefront of the efforts to transition to a low-carbon economy,” Albert Benchimol, Axis president and CEO, said in the statement.
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