Thursday, 25 July 2019
Market Forces has lodged a shareholder resolution on behalf of over 100 Suncorp shareholders, calling on the insurer to set targets to reduce its investment and underwriting exposure to coal, oil and gas in line with the Paris Agreement’s goal of limiting global warming to 1.5 degrees.
Insurers and their customers are directly exposed to the financial risks caused by the physical impacts of global warming, such as drought, bushfire and more intense storms and cyclones. However, Suncorp continues to insure and invest in fossil fuels, the largest sources of greenhouse gas emissions globally and an industry still attempting to expand in Australia.
Claims due to floods, fires, cyclones and other natural disasters exceeded Suncorp’s provisioning by approximately A$1.7 billion in the past decade. Suncorp has under-provisioned for natural hazards in eight of the last 10 years. In the six months to 31 December 2018, profit was slashed by 45% year-on-year mainly as a result of extreme weather events. This coming financial year Suncorp will increase its natural hazard allowance to A$820 million from A$720 million and buy another A$200 million of natural perils reinsurance cover.
“Suncorp’s shareholders and customers are feeling the financial impacts of the climate crisis, while at the same time their company is willing to support the expansion of the dirty industries fueling this crisis,” said Market Forces campaigner Pablo Brait.
“Global warming poses an existential threat to the insurance sector. Suncorp needs to act as though limiting global warming to 1.5 degrees is the fight of its life, because that’s exactly what it is.”
“Global warming poses an existential threat to the insurance sector. Suncorp needs to act as though limiting global warming to 1.5 degrees is the fight of its life, because that’s exactly what it is.”
Sixteen global insurance companies are now restricting their insuring of thermal coal, with over 20 dumping coal company shares. These restrictions are now spreading to other fossil fuels, with restrictions on tar sands and oil shale being implemented.
“It’s in everyone’s interest that Suncorp phases out insurance and investments in coal, oil and gas. The company’s bottom line, shareholder value and the millions of Australians who trust Suncorp to protect their lives, homes and livelihoods deserve strong action on climate change”, Mr Brait concluded.
For further comment please contact Pablo Brait.