AXA to Fully Exit Coal Industry in Europe and OECD Countries by 2030

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 [e-mail]

(END) Dow Jones Newswires

November 27, 2019 09:00 ET (14:00 GMT)

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