AXA                            FSUK0041

Written evidence submitted by AXA


AXA Follow-Up Response to EA Committee Queries


On Reclaim Finance’s Calculations


In 2021, AXA committed to stop investing in and underwriting new upstream oil and greenfield exploration projects unless carried out by companies with far-reaching and credible transition plans. Our policy excludes all new direct investments in listed equities and corporate bonds in developed markets in Oil and Gas companies operating in upstream and/or oilfield services and/or downstream subsectors, as well as most midstream players.


We’re grateful to the Committee for following-up with an explanation of Reclaim Finance’s calculations. Our understanding remains that these calculations are based on future potential oil and gas projects, rather than existing ones. As mentioned in our initial response to the Committee’s question, each large project is subject to individual consideration and review. AXA has tried to take a balanced approach and identify some clear no-goes through our oil and gas exclusion policies.  


On the NZIA


Please see further information about our decision to withdraw from the NZIA below.


From the outset, the NZIA and its members were guided by and complied with all applicable laws including antitrust laws. However, we see that political pressure on climate initiatives and the companies that participate in them in the United States has increased. As a global insurer with significant US footprint, AXA – alongside other insurers – has therefore decided to discontinue its NZIA membership. We remain determined to pursue our sustainability journey as an investor, an insurer and a responsible company.


The NZIA has enabled the establishment of tools and methodologies for companies to measure and disclose greenhouse gas emissions associated with insurance and reinsurance underwriting portfolios. AXA will now focus on leveraging this toolset to set its own individual intermediary targets and support its customers in their transition.


I want to emphasise that this decision does not impact the net zero commitments we highlighted to the Committee in our written and oral submissions to its inquiry and we remain committed to working within the other initiatives in which we are involved (including NZAOA and NZAMI) on measurement methodologies and engagement best practices which have been and continue to be instrumental in defining and steering our own decarbonisation strategy.


July 2023