Chubb Shareholders Support Climate Disclosure as Annual Insured Losses from Extreme Weather Continue to Climb
Investors concerned by misalignment between the need for emissions reductions and insurance company’s continued investments in and insuring of fossil fuels
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832
BERKELEY, CALIFORNIA—MAY 16, 2024—Today, Chubb Ltd., one of the world’s leading insurers, announced shareholder support of 28.3% for a shareholder proposal calling on the insurer to measure and disclose greenhouse gas emissions (GHG) from its underwriting, insuring, and investment activities in high-carbon companies, including fossil fuels. The resolution was filed by investor representative As You Sow and Green Century Capital Management.
Investors at Berkshire Hathaway and Travelers voted on similar proposals this proxy season. Nearly 40% of Berkshire’s independent shareholders supported a proposal asking it to measure, disclose, and set greenhouse gas goals for its insured and invested emissions.
As global temperatures rise, annual insured losses from natural catastrophes now routinely approach $100 billion in the U.S., compared to $4.6 billion in 2000. Yet, Chubb is the sixth largest investor in fossil fuel-related assets, with $3 billion invested as of 2019. In 2023, Chubb was named amongst the world’s biggest providers of fossil fuel insurance and is reportedly insuring the Freeport liquefied natural gas terminal in Texas and Louisiana, locking in decades of high-carbon energy production in the U.S.
“Continuing to invest in and insure activities that cause catastrophic losses to grow year on year, while making whole swathes of the U.S. uninsurable, is the epitome of either obliviousness or cynicism,” said Danielle Fugere, President of shareholder representative As You Sow. “Shareholders call on Chubb, Berkshire, and Travelers to begin measuring and reducing their emissions. Only through meaningful emissions reductions year on year, by every company, will we make our way through this global crisis.”
Fugere added, “The only way to stop the hemorrhaging from climate-related catastrophe losses is for Chubb to address the underlying problem of carbon emissions. This requires action by Chubb and other insurers. Once emissions are measured, Chubb and its investors will better understand if its climate-related actions are reducing emissions in line with global goals or creating more harm.”
In June 2023, the U.S. Senate Budget Committee launched an investigation into insurers’ support of new fossil fuel projects, including Chubb’s. The Committee sought information related to how insurance companies assess climate risks when making underwriting and investment decisions. States like California, where Chubb has significantly reduced coverage due to escalating climate costs, are enacting new regulations to address the home insurance crisis.
Compared to peers, Chubb stands out as a laggard. Travelers and AIG have begun to disclose their financed emissions, and European insurers, including Swiss Re, Munich Re, Allianz, and Aviva have begun disclosing investment related emissions. Swiss Re also discloses its insurance associated emissions, and Aviva plans to disclose and set 2030 targets for its insured emissions.
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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. 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.