AXA to invest €1.5bn to fight deforestation
Re/insurer AXA has commited €1.5 billion investment to sustainable forest management as part of its plan to combat the deterioration of forest ecosystems.
The investment will include €500 million in reforestation projects in emerging countries, enabling a total of 25 megatons of CO2 to be captured each year.
As part of its new commitment to preserve biodiversity, AXA will also strengthen its investment and insurance requirements in activities that actively contribute to deforestation. This will concern certain soy, palm oil, timber, and cattle production in regions where these industries strongly contribute to deforestation.
Deforestation is one of the main causes of biodiversity loss and carbon emissions, it explained. It even represents a double loss for the climate because forests make are the greatest contributors to carbon capture.
The insurer's other initiatives include joining the World Heritage Sites initiative, launched by the United Nations Principles for Sustainable Insurance and WWF1, and implementing specific exclusions on its insurance activities to protect the main biodiversity reserves identified by UNESCO. Half of these sites, spread over 110 countries, are recognised as biodiversity hotspots, and play a key role in natural disaster prevention.
Thomas Buberl, chief executive officer of AXA, said: "Forests represent 80 percent of the Earth's biodiversity and play an essential role in the fight against climate change. AXA has been a pioneer in the financial industry by adopting, in 2013, restrictions on unsustainable palm oil operations to protect stressed ecosystems. In the face of the climate emergency, and prior to the COP26, we are proud to extend our commitments and announce new measures to fight deforestation, protect forest ecosystems, and preserve biodiversity."
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