AXA announces new plans to phase out coal by 2030

Written by Michael Griffiths

27/11/2019

AXA has put European coal companies on notice that they should publish plans to phase out coal that are compatible with the UN Paris climate agreement by 2021.

The French global insurer announced today that it will totally phase out its insurance and investment exposure to coal by 2030 in the EU and OECD countries, and by 2040 everywhere else.

The new policy comes just ahead of the fifth edition of the Climate Finance Day in Paris, and will exclude approximately 400 companies still with coal plant and mine expansion plans.

“AXA has set a new benchmark for best practice with this announcement,” said Unfriend Coal campaign coordinator, Lucie Pinson.

“Zero tolerance for coal expansion is the only responsible action in a carbon constrained world, and dumping coal companies like RWE, Adani, and KEPCO is essential for financial institutions that do not want to be complicit in the damage to climate and human health these companies cause. BNP Paribas and Talanx now lag well behind the best climate practice for financial institutions.”

The policy, which has been announced less than two weeks after the Unfriend Coal campaign called on AXA to fulfil its existing coal commitments, will also include a refusal to renew contracts for clients highly exposed to coal.

Europe Beyond Coal finance and utility coordinator, Kaarina Kolle, commented: “Banks, investors, and insurers are now under great pressure to up their game on climate with new coal policy announcements.

“The only defensible position is one like AXA's – a strong 2030 phase out commitment for EU and OECD countries, coupled with detailed near-term plans on delivering it. This is the minimum standard for any financial institution committed to the Paris agreement’s 1.5 degree C target.”

AXA also announced that only coverage dedicated to renewable energy projects will be allowed beyond 2021 for companies that derive more than 30% of their revenue or electricity production from coal, or that produce more than 20 million tonnes of coal per year.

“AXA is leading the way by driving its portfolio of coal down to zero by 2030, added Urgewald energy campaigner, Regine Richter.

“German insurers’ commitments of 2038 or 2040 are not good enough. The EU and OECD coal plants, coal mines and companies they insure and invest into are duty-bound to shut down by 2030 at the absolute latest. They will run huge, reckless risks if they fail to do so.”

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