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Munich Re Exits Oil and Gas, AIG and Chubb Exposed

Reinsurance firm Munich Re has committed to no longer invest in or insure oil and gas contracts or projects. This covers the planning, financing, construction or operation of new oil and gas fields, new midstream oil infrastructure and new oil-fired power plants as at 31 December 2022. From 2025, Munich Re will require a credible commitment to net zero greenhouse gas emissions by 2050 including corresponding short- and mid-term milestones from listed integrated oil and gas companies with high emissions. Separately, NGO Reclaim Finance has identified US insurers AIG and Chubb as providing coverage to a project designed to extend the life of Australia’s Ichthys LNG facility to 2060 by developers Inpex and TotalEnergies. The project would bring Ichthys’ total emissions to 590 MtCO2, close to the annual emissions for all of Australia. This is despite AIG committing earlier this year to reach net zero greenhouse gas emissions by 2050, as well as restricting support for new coal, tar sands, and Arctic energy projects. Chubb has restricted insurance coverage for tar sands and coal projects, but has no restrictions on conventional oil and gas underwriting. Elana Sulakshana, Rainforest Action Network’s Senior Energy Finance Campaigner, said: “To live up to their sustainability commitments and rhetoric, AIG and Chubb must rule out insurance for the expansion of Ichthys LNG and all new fossil fuel production worldwide.” 

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