Majority of Chubb Shareholders Support 1.5oc Emissions Reduction Proposal

Today, Chubb Limited released preliminary voting results from its annual general meeting where a majority of shareholders voted in favor of a greenhouse gas reduction proposal filed by investor representative As You Sow.

The resolution asks Chubb to issue a report on how it intends to measure, disclose, and reduce the greenhouse gas emissions associated with its underwriting, insuring, and investment activities, in alignment with the 1.5degC goal. A similar vote at insurer Berkshire Hathaway recently received support from more than 47% of independent shareholders.

"This high vote should be a wake-up call to Chubb and other large insurance companies," said Danielle Fugere, president of As You Sow. "Chubb can no longer ignore its role in financing high carbon activities. The climate risk associated with its underwriting and investing has become unacceptable to investors, who now seek action from Chubb to reduce its significant contribution to climate change."

2021 was the second most costly year on record for the world's insurers, with insured losses totaling $120 billion from natural catastrophes. Chubb reported pre-tax catastrophe losses of $1.15 billion in Q3 2021 alone, with $806 million of that figure attributable to Hurricane Ida. This follows a larger global trend -- insured losses from natural disasters reached $42 billion in the first six months of 2021, a 10-year high.

Chubb is one of the largest underwriters of high-carbon companies. According to an Insure Our Future report on insurers' exposure to the oil and gas sector, Chubb is one of the top providers of coverage to the oil and gas industry, surpassing peers such as The Hartford and AXA. Additionally, Chubb's bondholding and shareholding in coal alone amounts to $195 million.

Chubb currently addresses only its Scope 1 and 2 operational emissions, which covers emissions from electricity used in its offices and travel, among others, but ignores the vast majority of its financed greenhouse gas emissions. "By not addressing its financed emissions, Chubb continues a cycle of supporting activities that harm its own bottom line and increases risk for investors," Fugere said.

Chubb is falling behind peers in the global insurance industry that are increasingly embracing net-zero commitments. AIG and The Hartford recently committed to reaching net-zero emissions from their underwriting and investment portfolios by 2050 or sooner, following shareholder proposals filed by the Presbyterian Church (USA) and As You Sow respectively.

Members of the Net-Zero Insurance Alliance have made an overarching commitment to reach net-zero emissions from their insurance and reinsurance underwriting portfolios by 2050. The Net-Zero Insurance Alliance currently has 25 members, seven of which are in the top 30 largest global insurers by market cap.