AXIS Capital commits to GHG reduction

AXIS Capital Holdings has announced a commitment to a 50% absolute reduction of Scope 1 and 2 greenhouse gas (GHG) emissions by 2030 across its operations.

The commitment is the company’s latest step in its plan to transition to a low-carbon economy. Using a 2019 baseline, AXIS Capital’s GHG reduction targets align with the goals of the Paris Agreement – to limit global warming to below 2°C above pre-industrial levels.

“As a specialty insurer and reinsurer that operates in the property and casualty space, we see firsthand the importance of mitigating climate risk and supporting the transition to a low-carbon economy,” said Albert Benchimol, president and CEO of Axis Capital. “I am proud of the actions AXIS has taken to date, such as investing in our renewable energy business and significantly limiting new thermal coal and oil sands business from our insurance, facultative reinsurance and investment portfolios, with a goal to fully phase these out by 2040 globally. Our alignment to science-based GHG reduction targets in our global operations is the latest step in our journey.”

The commitment is part of AXIS Capital’s broader climate strategy, driven by its Corporate Citizenship program. Recent climate action by the company includes:

• Underwriting and investment
  • Continued investment in renewable energy insurance business
  • Completed audit of (re)insurance portfolio’s climate risks and opportunities across product lines
  • Publication of ESG Investment Policy in 2022, which included climate factors
  • Phase out thermal coal business from insurance, facultative reinsurance, and investment portfolios by 2030 in OECD countries and the EU and by 2040 globally, and significantly limit new business related to oil sands and the exploration, production and transportation of oil and gas in the Arctic National Wildlife Refuge
• Supply chain: Signatory of global pledge for sustainable supply chains through the Sustainable Markets Initiative Insurance Task Force, of which AXIS is a member
• Employee commuting: Transition to global hybrid work model, launch of benefit programs such as a UK initiative to incentivise the use of electric cars
• Disclosure: Published first Task Force on Climate-Related Financial Disclosures-aligned report in 2022
• Research and development: Conducted climate stress tests and continued evaluation of climate-related data through AXIS’s Exposure Management Center of Excellence
• Partnership and engagement: Membership in organisations including the Lloyd’s Sustainable Markets Initiative Insurance Task Force and the Insurance Development Forum. More than 75% of local giving in 2022 was tied to ESG focus areas of climate and diversity, equity and inclusion

“A core value at AXIS is delivering on our promises, and we proudly hold ourselves accountable to GHG reduction goals,” said Conrad Brooks, AXIS general counsel and executive committee corporate citizenship sponsor. “We as individuals, as an organisation, and as a society all have a role to play in mitigating climate risks.”

Have something to say about this story? Let us know in the comments below.