Swiss Re embarks on carbon reduction drive
SUMMARY
Increasing numbers of oil and gas clients will be frozen out of Swiss Re policies.
By Callum CyrusPOSTED IN:
Reinsurance firm Swiss Re said on March 17 it will not reinsure upstream oil and gas projects that pass their final investment decision after 2022.
The only exception is in cases where projects meet criteria for net-zero emissions reductions validated by third-party verification officials, such as the Science Based Targets initiative. From July next year, it will also stop providing reinsurance or direct investments to oil and gas companies that account for the world's 10% most carbon-intensive fossil fuel production. The latter policy is currently set at the top 5% of companies.
Oil and gas producers with more than 10% of output based in the Arctic region will also be ineligible for policies from July 2023. Swiss Re wants its reinsurance business to have only oil and gas exposure aligned with 2050 net zero goals by the end of this decade. Internally, it has implemented a carbon levy of $100/metric ton for its direct and indirect emissions, and will gradually raise the levy to $200 in 2030.
