QBE Insurance Group today published its new Energy Policy, to provide shareholders, customers and the wider community with a clear explanation of the Group’s approach to investing in and underwriting energy projects, now and into the future.
Group CEO, Pat Regan, said the Policy makes clear QBE’s support for the objectives of the Paris Agreement and underscores the Group’s commitment to acting on climate change, while supporting its customers in the transition to a lower carbon future.
“Consistent with the scientific reports of the Intergovernmental Panel on Climate Change, we recognise that a failure to rapidly decarbonise our economies will lead to increasingly volatile and severe weather-related events.
“As an international insurer, with products covering a diverse portfolio including property, crop, energy, marine and aviation, we are acutely aware of the risks and opportunities that climate change presents for our customers and our business.
“Across our operations, and in the decisions we make about where to invest or which risks we choose to underwrite, we have developed a detailed approach for how we manage climate risk through our 2018-2020 climate change action plan, which forms part of our 2018 Annual Report.
“This new Energy Policy is consistent with that plan and confirms our intention to phase out all direct insurance services for thermal coal customers by 2030, at the latest. We also commit to targeting zero direct investments in the thermal coal industry by 1 July this year, while maintaining a margin of up to 0.5% of total funds under management,” Mr Regan said.
Thermal coal customers – those with more than 30% of revenue or 30% of power generation from thermal coal – make up less than 0.5% of QBE’s current premium revenue.
QBE’s Energy Policy also confirms the company’s intention to continue to invest in and provide insurance services for metallurgical coal and oil and gas companies, subject to further international developments as the world transitions to a lower carbon economy.
Mr Regan said QBE would continue to work closely with clients in these sectors to assist with their transition to a lower carbon economy, including by increasing QBE’s range of insurance services to accommodate changes in policy and technology. QBE will also continue to invest in a lower carbon economy by financing renewable energy infrastructure and investing in green finance.
“Climate change is a global challenge that requires a concerted, economy-wide response. QBE is committed to playing its part and we have further demonstrated the depth of that commitment today.”
Source: Company Press Release