AXA to Fully Exit Coal Industry in Europe and OECD Countries by 2030
November 27 2019 - 8:15AM
Dow Jones News
By Maitane Sardon
French insurer AXA SA (CS.FR) on Wednesday said that it will
exit the coal industry in the European Union and OECD countries by
2030, and the rest of the world by 2040, to align itself with the
Paris Agreement on climate change.
The insurer, which announced its divestment from the coal
industry four years ago, said its new coal investment policy
tightens existing restrictions on underwriting. It said it will
publish annual updates on its progress.
As part of its goal to be more environmentally responsible, AXA
said it will launch "transition bonds" to finance projects which
contribute to reducing CO2 emissions and moving away from fossil
fuels. It will also put 12 billion euros ($13.21 billion) in green
investments between 2020 and 2023.
AXA Chief Executive Thomas Buberl said "the climate emergency"
requires additional measures to ones that already exist in the
industry. He said AXA's goal is to accelerate its contribution
toward a low-carbon and resilient economy by focusing its
sustainable finance effort on the energy transition of major
industries.
The move comes as pressure mounts for financial companies to
support activities that protect the climate from harmful greenhouse
gas emissions. According to non-profit Rainforest Action Network,
coal power and coal mining finance is led by Chinese banks, with
European and U.S. banks doing more to restrict coal investment.
Other European finance companies that have recently announced
plans to reduce ties with coal include Societe Generale S.A. France
(GLE.FR) and Milan-based UniCredit S.p.A. (UCG.MI).
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
November 27, 2019 09:00 ET (14:00 GMT)
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