French insurer CNP to stop financing new oil and gas projects

  • Will also end investing in organizations that do
  • Follows suggestions from landmark IEA report
  • Will back again people firms’ inexperienced bonds, renewables

LONDON, Feb 17 (Reuters) – France’s CNP Assurances (CNPP.PA) will no longer finance new oil and fuel jobs or devote far more money in providers arranging to do so, joining the escalating ranks of insurers taking a a lot more pro-lively solution to tackling world wide warming.

The corporation said it was acting in response to scientific experiences, which includes just one by the Worldwide Electricity Agency, which claimed new initiatives were not desired if the environment required to limit worldwide warming to 1.5 degree Celsius higher than pre-industrial norms.

“To attain the ambitions of the Paris Settlement (on tackling world wide warming), it is essential to gradually decrease the use of fossil fuels,” Olivier Guigné, CNP’s group financial investment director claimed in a statement on the firm’s site dated Feb. 16.

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“The actions adopted today by CNP Assurances aim to add to this.”

Under the new prepare, nonetheless, CNP explained it would even now finance subsidiaries of electricity organizations focused completely to renewable assignments, and invest in green bonds.

Likely forward, CNP claimed it would publicly disclose its holdings in the oil and fuel sector on an once-a-year foundation.

At a U.N. weather conference in November, banks, insurers and buyers with $130 trillion at their disposal pledged to put combating local climate transform at the centre of their do the job. read far more

French general public lender Banque Postale fully commited in October to stop offering providers to the oil and gas sector by 2030. Even so, most financial institutions and insurers carry on to finance the sector with no limits. read additional

For people corporations in which it has an present stake, CNP reported it would question them to quickly quit any new exploration or manufacturing of oil or gas, and lobby governments to stop subsidies to the sector and support curtail need for the fuels.

On thermal coal, a primary induce of manmade world-wide warming, CNP explained it would stop new immediate investments in businesses that do not have a prepare to phase out its use by 2030 in OECD international locations and 2040 in the rest of the planet.

“By requesting that businesses they make investments in right away halt oil and fuel enlargement, CNP Assurances’ policy turns into finest observe and a case in point that serious engagement methods and formidable exclusions go hand in hand,” mentioned Guillaume Pottier, stewardship campaigner at Reclaim Finance.

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Reporting by Simon Jessop
Modifying by Mark Potter

Our Requirements: The Thomson Reuters Trust Rules.

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