French insurer CNP to cease financing new oil and fuel tasks

LONDON, Feb 17 (Reuters) – France’s CNP Assurances (CNPP.PA) will not finance new oil and fuel tasks or make investments more cash in firms planning to take action, becoming a member of the rising ranks of insurers taking a extra pro-active strategy to tackling international warming.

The corporate mentioned it was appearing in response to scientific studies, together with one by the Worldwide Power Company, which mentioned new tasks weren’t wanted if the world wished to restrict international warming to 1.5 diploma Celsius above pre-industrial norms.

“To attain the targets of the Paris Settlement (on tackling international warming), it’s essential to regularly scale back using fossil fuels,” Olivier Guigné, CNP’s group funding director mentioned in a press release on the corporate’s web site dated Feb. 16.

“The measures adopted as we speak by CNP Assurances goal to contribute to this.”

Beneath the brand new plan, nevertheless, CNP mentioned it will nonetheless finance subsidiaries of power firms devoted completely to renewable tasks, and spend money on inexperienced bonds.

Going ahead, CNP mentioned it will publicly disclose its holdings within the oil and fuel sector on an annual foundation.

At a U.N. local weather convention in November, banks, insurers and traders with $130 trillion at their disposal pledged to place combating local weather change on the centre of their work. learn extra

French public financial institution Banque Postale dedicated in October to cease offering providers to the oil and fuel sector by 2030. Nonetheless, most banks and insurers proceed to finance the sector with no restrictions. learn extra

For these firms by which it has an current stake, CNP mentioned it will ask them to instantly cease any new exploration or manufacturing of oil or fuel, and foyer governments to finish subsidies to the sector and assist curtail demand for the fuels.

On thermal coal, a number one explanation for artifical international warming, CNP mentioned it will cease new direct investments in firms that wouldn’t have a plan to part out its use by 2030 in OECD international locations and 2040 in the remainder of the world.

“By requesting that firms they spend money on instantly halt oil and fuel enlargement, CNP Assurances’ coverage turns into finest observe and a working example that critical engagement methods and bold exclusions go hand in hand,” mentioned Guillaume Pottier, stewardship campaigner at Reclaim Finance.

Reporting by Simon Jessop
Modifying by Mark Potter

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