What is Zurich doing to cut fossil fuel exposure?
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Several insurers and reinsurers have limited their exposure to coal, oil and gas in their insurance and investment activities, but climate activists continue to urge them to do more to phase out support for this sector. What is Zurich doing to restrict its exposure to fossil fuel?
The Swiss insurance group told mallowstreet it has “clear and strict environmental guidelines” in place to mitigate potential negative impacts on the environment.
Zurich said it has ceased insuring certain fossil fuel businesses, including thermal coal, oil sands, oil shales, new greenfield oil exploration projects, as well as oil and gas drilling and production in the Arctic.
The insurer’s comments came in response to a point made by Peter Bosshard, coordinator of the international Insure our Future campaign.
Bosshard said Zurich, along with a number of large insurers, “continue to underwrite not just the continuation but the expansion of oil and gas production”.
The other insurers mentioned by Bosshard have been contacted for comment.
Zurich said it is not a major insurance provider to the fossil fuel industry as it has “meaningfully reduced” its market share over the last decade.
“Zurich is well-aware of the climate crisis and committed to using every lever available to help accelerate the transition to a net-zero emissions economy. A transition is necessary for the economy and society to address and manage risks arising from this process, including energy supply volatility,” a spokesperson told mallowstreet.
“That is why Zurich has made it a priority to proactively support businesses from all sectors as they adapt their business models, and we will continue to collaborate with companies to support the transition.”
What is Zurich’s exclusion policy for coal, oil sands and oil shale?
According to Zurich’s website, the company does not underwrite or invest in companies that:
· generate more than 30% of their revenue from mining thermal coal, or produce more than 20m tonnes of thermal coal per year;
· generate more than 30% of their electricity from coal;
· are in the process of developing any new coal mining or coal power infrastructure;
· generate at least 30% of their revenue directly from the extraction of oil from oil sands;
· are purpose-built transportation infrastructure operators for thermal coal or oil sands products, including pipelines and railway transportation;
· generate more than 30% of their revenue from mining oil shale, or generate more than 30% of their electricity from oil shale.
Zurich is also a member of the UN-convened Net-Zero Insurance Alliance, a group of leading insurers committed to transition their underwriting portfolios to net zero greenhouse gas emissions by 2050.
Is it fair for climate activists to keep raising the bar? What else can insurers do to phase out fossil fuel support?
