Australia's Suncorp to stop insuring oil and gas

Australian insurer Suncorp will stop insuring and financing the oil and gas industry by 2025, while completely phasing out direct investments by 2040.

The company said in its Responsible business report 2019-20 that it is no longer underwriting, financing or directly investing in new oil and gas projects as part of its commitment to phase out of existing thermal coal by 2025.

"Suncorp has taken a careful and considered approach to building resilience to the physical risks of climate change, as well as reducing the impacts of economic and transition risks, to ensure our business is sustainable into the future," said Suncorp chairman Christine McLoughlin.

At the end of June, Suncorp’s investment in low-carbon solutions was $236 million. Its fossil fuel extraction and electricity generation activities made up less than 0.1 percent of general insurance gross written premium. The exposure was less than 0.5 percent of its insurance and shareholder investment assets, and less than 1.5 percent of total investment assets under management.

"Suncorp will continue to underwrite, lend to and invest in companies whose business is clearly consistent with the transition to a net-zero emissions economy by 2050," the report said.

"This year we deepened our understanding of the strategic and financial risks and opportunities presented by the changing climate through comprehensive scenario analysis. The insights gained will help us manage risks posed by the increasing severity of natural hazards, act on new and emerging opportunities, and support an orderly transition to a net-zero emissions economy," added McLoughlin.