Marsh McLennan to place coverage for oil pipelinePosted On: May. 19, 2022 1:51 PM CST
Marsh & McLennan Cos. Inc. is arranging insurance coverage for a controversial east African oil pipeline that major banks and insurers are distancing themselves from, the Financial Times and the Bureau of Investigative Journalism reported Thursday.
Marsh’s involvement comes despite a letter of protest last year to management from more than 100 of its employees, the news reports said.
The $5 billion East Africa Crude Oil Pipeline, which will transport oil from Uganda to the Tanzanian coast, is being developed by France’s TotalEnergies SE and Chinese state oil group CNOOC Ltd.
Major insurers and reinsurers, including Allianz SE, Munich Reinsurance Co. and Axa SA, have already refused to provide coverage for the 897-mile-long pipeline.
Marsh McLennan said in a statement Thursday it is committed to helping businesses develop low-carbon business models and manage risks associated with the transition from fossil fuels to renewable energy.
“Marsh McLennan has a long-standing policy of not confirming the identity of clients,” the brokerage said.
"We believe all communities are best served by working with operators of clean energy assets to accelerate progress to a lower carbon world and with traditional energy clients to enable them to manage the risks associated with current projects and make the transition as quickly and responsibly as possible," Marsh added.