World’s Largest Insurer Announces ESG Policy For Natural Gas Customers
April 6, 2023
The Swiss insurer, Chubb, most of whose clients are in the U.S., has announced updated underwriting criteria for natural gas extraction. According to a statement, it will only “continue to provide insurance coverage for clients that implement evidence-based plans to manage methane emissions including, at a minimum, having in place programs for leak detection and repair and the elimination of non-emergency venting.” Clients will be required to adopt “one or more measures” that reduce emissions flaring. The new criteria start immediately. The company will create a resource center to help companies identify and implement methane reduction technologies. Chubb, the world’s largest insurer, also says it will no longer provide coverage for gas and oil projects in “government-protected conservation areas in the World Database on Protected Areas,” which do not allow for sustainable use. These include nature reserves, wilderness areas, national parks/monuments, habitat/species management areas, and protected landscapes/seascapes. In 2019, Chubb became the first insurer with significant U.S. operations to limit coal-related underwriting and investment. It later extended that policy to oil-sands projects.
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