The stampede to exit insurance cover for oil and gas continues, although people in developed economies in Europe or the USA don’t seem to grasp what it means to be totally energy dependent upon unreliable green electricity, plus foreign powers for nuclear or oil. In short, it means rationing, poverty, industrial collapse and darkness. So far, most major insurance brands seem to be going along with the Net Zero economic and social suicide policy, presumably for good reasons, not just the extinction of civilised and comfortable life.
As the failed boycott of Russia has shown, refusing to deal with countries, or companies you don’t like merely sets up alternative supply chains. Russian oil and gas is sold to China or India, who then sell it to the West. The same thing will happen with insurance cover. Once it is cancelled by Western insurers keen to appease the woke mob, the oil and gas industry will find insurance cover in Asia, the Middle East or elsewhere. That’s how business works. China doesn’t care about the climate, neither does India, those nations both have over one billion hungry mouths to feed and expanding manufacturing, EV battery pack/car retailing, consumer goods etc is one way to generate income. To do that you need cheap reliable energy, no matter what lip service you might pay to the UN or WEF.
Here’s the latest insurer exit strategy update from France;
French insurance company, AG2R LA MONDIALE, has committed to stop investing in oil and gas companies developing new oil and gas fields from 2027, and is calling on the companies, including TotalEnergies, to stop expanding oil and gas production. Reclaim Finance has welcomed the new measures and calls on AG2R LA MONDIALE to go one step further and immediately stop purchasing new bonds from companies still developing new oil and gas fields. While a growing number of financial institutions have adopted measures against oil and gas expansion, Reclaim Finance is urging greater momentum to avoid some of the biggest players from being left behind.
One year after announcing that it would exit companies involved in the unconventional oil and gas sector by 2030, AG2R LA MONDIALE has today announced new measures aimed at companies in the oil and gas production sector. The measures clearly call for a halt to the development of new oil and gas fields. The group has indicated that it will consider voting against the remuneration of directors and management at annual general meetings (AGMs) if this request is not complied with, and failure to comply by 2027 will result in divestment.
AG2R LA MONDIALE joins the dozen or so French financial players who have taken action against oil and gas expansion. But some heavyweight financial institutions have been slow to bring their practices into line with their commitment to the climate. Among the French laggards are Crédit Agricole Assurances and Crédit Mutuel Asset Management, as well as the other investment and banking subsidiaries of the BPCE and Société Générale groups. While the CEO of the Crédit Agricole Group has acknowledged the need to halt the expansion of oil and gas production in order to limit global warming to 1.5°C, none of its subsidiaries has adopted a policy that reflects that.