Insurance giant Swiss Re has announced it will no longer insure most new oil and gas projects as part of its new policy on tackling climate change.
Under the Enhanced Oil and Gas Policy, from July 2023 the company will not provide individual insurance covers for oil and gas companies that are responsible for the world’s 10% most carbon-intensive oil and gas production.
It is an expansion of the policy launched in 2021, when it ceased cover for the top 5% of the most polluting firms.
In addition, Swiss Re will no longer insure or reinsure or directly invest in new oil and gas field projects that will receive the green light, in the form of a final investment decision, from their parent companies after 2022.
Exceptions will apply to projects of companies aligned with net zero emissions by 2050, assessed by the Science-based Targets initiative or a comparable third-party assessment.
Swiss Re expects by 2025, half of its overall oil and gas premiums are to come from companies that are aligned with net zero by 2050 and by 2030, its oil and gas re/insurance portfolios are to contain only companies that are aligned with net zero by 2050.
The company is also developing an approach for oil and gas in treaty reinsurance to be finalised by 2023.