The U.S. Securities and Exchange Commission (SEC) has ruled in favor of a landmark shareholder resolution calling for Chubb to stop underwriting new fossil fuel supply projects. This initiative is in line with the International Energy Agency’s (IEA’s) Net Zero Emissions by 2050 Scenario.
The resolution was filed by Green Century Capital Management and will be voted on at Chubb’s annual general meeting in May. Green Century has filed similar resolutions directed at Travelers and The Hartford. The company expects the SEC to rule favorably, despite the three insurers having filed non-action requests.
“I can’t overstate the importance of today’s SEC ruling,” Andrea Ranger, shareholder advocate with Green Century, said in a release. “We can now ask insurance companies to adopt policies that align with the IEA report findings, which we believe makes clear that fossil fuel expansion has no place in a net zero by 2050 future. Insurers like Chubb have enabled the fossil fuel industry to continue business-as-usual which has delayed much-needed adoption of clean energy technologies.”
While the SEC has previously decided to allow shareholders to make greater demands of companies to address climate risks, this is the first time that shareholders have made such a broad challenge to the U.S. insurance industry for its contributions to the climate crisis.
“Insurers have been saying that underwriting fossil fuels, even new fossil fuel projects, requires a careful, calculated approach. We agree, but they should have started the process years ago,” Ranger said. “Even the current geopolitical conflicts demonstrate how politically charged and risky fossil fuels are, and, in our opinion, is another reason for insurers to walk away.”
