However, an activist group, Reclaim Finance, criticised the targets, stating that they fall short of what is necessary to achieve Axa’s commitment to reach net-zero emissions by 2050.
Axa, the second-largest insurer in Europe, has set specific goals for reducing carbon intensity and absolute carbon emissions. It aims to achieve a 20% decrease in the carbon intensity of its largest motor insurance portfolios between 2019 and 2030. Additionally, the company plans to achieve a 30% reduction in absolute carbon emissions from its largest corporate customers between 2021 and 2030.
Frederic de Courtois, Axa’s Deputy CEO in charge of finance, said the significance of these targets, stating that they represent a transformative step for the insurance business.
The carbon intensity target focuses on measuring emissions relative to a company’s output, while the absolute emissions target refers to the total amount of emissions released.
In addition to the insurance sector, Axa also raised its green target for its investment bank. The company now aims to reduce absolute emissions associated with assets in its general fund by 50% between 2019 and 2030, surpassing its previous goal of 20%.
While Axa’s announcement was welcomed as a positive initial move, Ariel le Bourdonnec from Reclaim Finance expressed concerns that the targets would not be sufficient to meet the insurer’s commitment to achieve net-zero emissions by 2050.
Axa operates in 51 countries and is taking steps to align its operations with environmental sustainability goals. However, further efforts may be required to meet more ambitious emissions reduction targets and contribute effectively to addressing climate change.
Source: Reuters
