Campaign calls on AXA to fulfil existing coal commitments

Written by Michael Griffiths

14/11/2019

French insurance giant, AXA, is not doing enough to fulfil its commitments to exit the coal industry, according to a new report released by BankTrack and the Unfriend Coal campaign.

The report states that for large companies getting out of the coal sector to contain global warming, it is no longer a matter of debate among the players in the Paris financial centre – and highlighted the commitment AXA made on July 2 this year, to adopt a timetable for ‘total disengagement from the coal sector’ by mid-2020.

The Unfriend Coal campaign notes that the coal industry still accounts for nearly one-third of global emissions, and further suggests that it remains necessary for large companies to not just exit the coal sector, but to do so on time – in order to meet the objectives of the Paris Agreement.

AXA has been recognised as the first major investor to adopt a coal policy that excludes companies based on the share of coal in their activities, and in 2017 started with the exclusion of companies which produce more than 20 million tonnes of coal per year, as well as those that plan to produce more than three gigawatts of new coal-fired power generation capacity.

While the report highlights AXA’s previous commitments – and that AXA no longer directly insures new coal mine and coal-fired power plant projects – it notes that the insurance giant can still provide insurance coverage, including non-life insurance, to companies that develop these same projects, even if AXA has excluded them from its investments.

The report suggests that according to sources in the insurance industry, AXA is one of the insurers of Adani Mining – the Australian subsidiary responsible for the mine project.

The Unfriend Coal campaign has called this ‘another inconsistency’ with the company’s 2017 commitment to not only control the impact of climate change on AXA, but also the impact of AXA’s activities on the climate.

Unfriend Coal campaign coordinator, and author of the report, Lucie Pinson, commented: “If followed by action, this commitment will set an example on the international scene which could lead to a powerful ripple effect.

“But, the risks of greenwashing are enormous: it is non-binding, so it is to be expected that many actors will be reluctant to adopt the necessary measures to exit coal fast enough.

“AXA continues to insure companies developing new coal projects, despite its claim to have taken a stand against the development of coal since the Planet Summit in 2017. It's high time for AXA to exclude the 417 new coal projects currently under development.”

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