France’s AXA stated it was strengthening its climate strategy by dedicating to exit coal more rapidly across a larger number of nations, as policymakers seek a sooner shift to a low-carbon economy.
AXA said that as an investor, it could exit entirely from the coal trade across nations in the Organisation for Economic Cooperation and Development (OECD) and the EU through 2030 and the remainder of the world by 2040.
Financial establishments and industrial firms are under high pressure from traders to show solid steps in supporting the implementation of the United Nations-supported 2015 Paris Agreement to avert catastrophic global warming.
Negotiators from almost 200 nations are set to meet in Madrid from Dec. 2-13 to thrash out details on how one can implement the Paris climate agreement and increase cuts of harmful greenhouse gas emissions.
A UN report this week stated greenhouse gas emissions hit a record last year and warned emission reductions would need to be significantly grown between 2020 and 2030 to meet the Paris target.
In other steps declared on Wednesday, the French insurer said it would put 12 billion euros ($13.23 billion) in “green funds” over the next ten years.
AXA further said that as an insurer, it would limit coal underwriting policy and cease promoting insurance contracts, aside from employee perks, to clients creating new coal ventures that exceed 300 MW in capability.
It will launch next month a brand new tool dubbed “FastCat” that will likely be sold as a part of insurance contracts worldwide and can offer weather alerting and real-time evaluation for clients going through hazards of natural disasters such as flood, cyclones, earthquakes, and wildfire.