AXIS Capital Commits to Greenhouse Gas Reduction Goals

AXIS Capital Holdings Ltd. announced its commitment to a 50% absolute reduction of Scope 1 and 2 greenhouse gas (GHG) emissions by 2030 across its global operations.

The action is the company’s latest step in its ambition to transition to a low-carbon economy. Using a 2019 baseline, AXIS said its science-based GHG reduction targets are in line with the goals of the Paris Agreement – to limit global warming well-below 2°C above pre-industrial levels.

“As a specialty insurer and reinsurer that operates in the property and casualty space, we see first-hand the importance of mitigating climate risk and supporting the transition to a low-carbon economy,” said Albert Benchimol, president and CEO of AXIS Capital.

“I am proud of the actions AXIS has taken to date, such as investing in our Renewable Energy business and significantly limiting new thermal coal and oil sands business from our insurance, facultative reinsurance and investment portfolios, with a goal to fully phase these out by 2040 globally. Our alignment to science-based GHG reduction targets in our global operations is the latest step in our journey,” he added.

(Editor’s note: Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions, not included in scope 2, that occur in the value chain of the reporting company, including both upstream and downstream emissions.)

Example actions that AXIS will take to achieve Scope 1 and 2 emissions reductions include optimization of the AXIS global real estate portfolio and identification of efficiencies in facilities management.

These commitments are one element of the broader AXIS climate strategy driven by its Corporate Citizenship program. These commitments complement and build upon recent AXIS climate actions such as:

• Value chain initiatives:

• • Underwriting and Investment:
    • Continued investment in renewable energy insurance business
    • Completion of audit of AXIS’ re/insurance portfolio’s climate risks and opportunities across product lines
    • Publication of ESG Investment Policy in 2022, which includes climate factors
    • Phase out of thermal coal business from insurance, facultative reinsurance, and investment portfolios by 2030 in OECD countries and the EU and 2040 globally, and significantly limit new business related to oil sands and the exploration, production and transportation of oil and gas in the Arctic National Wildlife Refuge.
  • Supply Chain: Signatory of global pledge for sustainable supply chains through the Sustainable Markets Initiative Insurance Task Force, of which AXIS is a member
  • Employee Commuting: Transition to global hybrid work model in light of the COVID-19 pandemic. Launch of benefit programs, such as an initiative in the United Kingdom to incentivize the use of electric cars

• Disclosure: Publication of first Task Force on Climate-Related Financial Disclosures (TCFD)-aligned report in 2022, addressing year-ended Dec. 31, 2021.
• Research and Development: Conducted climate stress tests and continued evaluation of climate-related data through AXIS’s Exposure Management Centre of Excellence (EMCE) (formerly known as the NatCat Centre of Excellence) to advance the company’s understanding of risk
• Partnership and Engagement: Membership in organizations such as the Lloyd’s Sustainable Markets Initiative Insurance Task Force and Insurance Development Forum, along with more than 75% of local giving in 2022 tied to AXIS ESG focus areas of climate and Diversity, Equity and Inclusion (DEI).

“A core value at AXIS is delivering on our promises, and we proudly hold ourselves accountable to GHG reduction goals,” said Conrad Brooks, AXIS general counsel and executive committee corporate citizenship sponsor. “We as individuals, as an organization, and as a society all have a role to play in mitigating climate risks.”

Source: AXIS Capital