Shareholders Support Climate Resolutions at Chubb and Berkshire
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609
BERKELEY, CALIFORNIA—MAY 19, 2023—Chubb Insurance released proxy voting results showing that nearly 30% of shareholders voted in favor of a climate-related resolution filed by As You Sow asking the insurer to report on how it intends to align its underwriting and investment activities with global greenhouse gas reduction goals.
As You Sow’s resolution asks Chubb to report on its plans to set 1.5°C aligned medium and long-term GHG targets for its underwriting, insuring, and investment activities.
A similar resolution filed with Berkshire Hathaway received a 43.8% independent shareholder vote (22.8% overall) earlier this month.
“Insurance companies must take responsibility for their contributions to climate change,” said Danielle Fugere, president of As You Sow. “Twenty climate-related weather disasters a year, with losses exceeding $1 billion each, has become the new normal. Insurance companies in states most vulnerable to climate change are becoming insolvent. It is time for insurance companies to address the contradictions of enabling high carbon activities while paying for catastrophic losses.”
Limiting global warming to 1.5°C has the potential to save upwards of $20 trillion globally by 2100, while exceeding 2°C could lead to hundreds of trillions in damages globally. Chubb experienced 2023 first-quarter catastrophe losses of $458 million compared to $333 million during the same time last year. These losses mirror a larger trend for global insurers: insured losses from natural disasters exceed those from the prior ten years, with $105 billion in 2021 alone. The magnitude of loss is a climate bellwether for the insurance industry.
Berkshire is similarly suffering significant losses from more frequent natural disasters exacerbated by climate change. It reported pre-tax losses of $3.4 billion from Hurricane Ian in 2022 and an insurance underwriting loss of $2.4 billion, a $1.65 billion increase from 2020.
“As one of the largest companies globally, Berkshire’s financing activities contribute to the escalating effects of climate change,” said Fugere. “This also means Berkshire’s actions have the potential to move the needle on corporate climate policies.”
Twenty-eight global insurers have joined the United Nations’ Net-Zero Insurance Alliance, committing to transition emissions from insurance and reinsurance underwriting portfolios to Net Zero by 2050. This strong show of shareholder support presents the opportunity for Chubb and Berkshire to adjust course and join their peers in responding to climate risk.
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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.