Shareholders to slam QBE over weak gas and oil policies

A resolution at QBE’s AGM tomorrow will call on the Australian insurance giant to align its oil and gas underwriting and investment activities with the goals of the Paris climate agreement. QBE’s Board is recommending shareholders vote against the resolution.

“QBE has fallen behind peers in the insurance industry in taking action, despite the growing financial impacts of climate change on the industry,” said Stuart Palmer, head of ethics research at Australian Ethical, an investor managing over $6.8 billion.

The resolution was co-filed by Australian Ethical together with other shareholders co-ordinated by advocacy group Market Forces. Active Super and U Ethical are also backing the resolution.

QBE might have provided disaster support initiatives for the recent flooding in New South Wales and Queensland, but shareholders want more action on oil and gas.

“As an investor, we want to see QBE following through on their commitment to support the goals of the Paris Agreement, for their business as well as for the well-being of people, animals and the environment,” said Palmer.

The insurance giant continues to support the expansion of the oil and gas sector with almost no restriction until at least 2030.

Market Forces campaigner Pablo Brait said QBE’s willingness to underwrite new oil and gas production “undermines global efforts to deal with the climate crisis.”

“Complexity and uncertainty is the business of insurance. It is not a good reason for QBE to close its eyes to the net zero transition and continue to underwrite the vast majority of the oil and gas sector without restriction,” added Palmer.

Another AGM attendee, Naomi Shine, is a Lismore flood survivor and chairs the Lismore Environment Centre. Shine’s house was destroyed by the recent floods.

“QBE’s willingness to insure new oil and gas fields will help make even more severe floods more likely – the opposite of what an insurance company should be doing. QBE helps oil and gas companies expand, while ordinary people suffer the consequences,” she said.

A similar resolution in 2021 was supported by investors including BlackRock, Cbus, AXA, Credit Suisse, HSBC, Northern Trust, SunSuper, Storebrand, UBS, Vision Super and the California Public Employees’ Retirement System.

Insurance Business has reached out to QBE for comment on this story.