In the run-up to COP26, AXA has announced that it will stop investing in and underwriting new upstream oil greenfield exploration projects unless they are carried out by companies with the most far-reaching and credible transition plans, and that it will increase its green investment target to €26 billion ( US$30.01 billion ) by 2023, compared with €24 billion announced at the end of 2020.

As part of its new commitments, AXA will exclude all new direct investments in listed equities and corporate bonds in developed markets in oil and gas companies operating in upstream or oilfield services or downstream subsectors, as well as most midstream players.

AXA selects integrated oil and gas companies for investments based on a restrictive selection process. Less than 5% of the approximately 650 companies identified in the Global Oil and Gas Exit List by NGO Urgewald meet AXA’s criteria. From 2023, AXA will apply the same selection process and take into account the Science-Based Targets Initiative framework as it becomes available, for its underwriting business of new insurance coverage on new upstream oil greenfield exploration projects.

As well, AXA will significantly reduce its investment and insurance exposure to unconventional exploration and production from its business from 2022, as follows:

• Artic – AXA extends the scope of its Artic investment and underwriting restrictions beyond the Arctic circle and the 70°N zone in alignment with the Arctic Monitoring and Assessment Programme.
• Oil sands – On top of the existing restrictions in place, AXA will adopt a more stringent policy by ceasing direct investments in companies producing more than 5% of the worldwide volume of oil sands. For underwriting, current exclusions will be extended to all lines of business.
• Fracking/shale oil and gas – AXA will no longer directly invest in companies, nor provide any insurance coverage to activities of companies, deriving more than 30% of their production from fracking/shale oil and gas.

“The climate emergency requires us to step up our actions and support the transition towards a low-carbon economy,” says Thomas Buberl, CEO of AXA. “The unprecedented and complex transformation needed can only happen by enabling companies from the energy sector to implement ambitious transition plans. Going forward, AXA is determined to focus its support only on actors with the most far-reaching and credible transition strategies.”