Helvetia defends different fossil fuel policies within group
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Swiss insurer Helvetia has defended its decision to have separate approaches to cut fossil fuel support on both sides of its balance sheet following arguments from climate activists that there is a “massive loophole” in the insurer’s policy.
The insurer has adopted a new fossil fuel policy that excludes insurance cover for new coal and extreme oil projects and excludes investments in coal and oil and gas companies which are still expanding their production.
Climate campaign group Insure Our Future criticised Helvetia for being contradictory, arguing in its investment policy that the insurer acknowledges that fossil fuel expansion needs to stop while it continues to insure new oil and gas extraction projects.
Ariel Le Bourdonnec, a campaigner with Reclaim Finance, said: "While its divestment policy sends a good signal, Helvetia urgently needs to address this double standard by removing the blind spot of its fossil fuel policy."
The activists said by allowing cover for the expansion of conventional oil and gas production, Helvetia’s new policy “lags far behind” what other major re/insurers have committed to.
Nora Scheel, campaigner at the Swiss campaign group Campax, says: “While it is positive that Helvetia no longer invests in oil and gas companies which are still expanding production, it does not make sense to reward the same companies by insuring their expansion projects. With this loophole, Helvetia puts its profit interests before the interests of its customers in a safe climate.”
Insure Our Future called on Helvetia and other re/insurers to immediately stop insuring new coal, oil and gas projects and to phase out support for the existing production of fossil fuels.
In response to the activists’ concern, Helvetia said the exit from the fossil fuel business is being implemented “in a differentiated and gradual manner”, arguing that the energy supply with fossil fuels remains necessary in the short term and the transition to low-carbon energy takes time.
Helvetia told mallowstreet it is important that the climate strategy is very well aligned with the insurer’s “fundamental, strategic orientation as well as its overall economic and social concerns” with regard to the mitigation of global warming.
A spokesperson for the Swiss insurer continued: “As a society, we are dependent on energy from oil and gas in the short to medium term. As an insurance company, we think long-term and are committed to a sustainable future. At the same time, we take the issue of energy security seriously and our strategy supports the necessary transition towards low-carbon energy.”
Should Helvetia restrict its support for fossil fuels?
