QBE faces climate scrutiny again after annual scorecard

QBE and other global insurers have again come under criticism over their climate record following the release of an annual scorecard measuring their efforts to move away from fossil fuel-related businesses.

The Australian insurer scored 2.5 out of a best possible 10 for underwriting to rank 12th globally out of 30 insurers and reinsurers covered by the 2022 scorecard from Insure Our Future, a coalition of climate campaigners.

QBE places 13th when it comes to investment, with a score of 1.6.

Allianz has the strongest underwriting policies on fossil fuel restrictions, topping the table with a score of 5.3 while Scor Re placed first with its efforts to divest from fossil fuel assets.

Market Forces, a member of Insure Our Future, says QBE is failing to match its words with actions when it comes to achieving the net zero target.

“QBE’s willingness to underwrite new oil and gas production undermines global efforts to reign in the climate crisis,” Senior Campaigner Pablo Brait said.

He says QBE’s natural catastrophe payouts are “blowing out” due to record-breaking extreme weather events and that “it makes little sense for QBE to provide almost unrestricted support for the climate-wrecking oil and gas industry”.

“Climate science and the International Energy Agency are clear, there can be no new oil and gas projects if we’re to have any chance of limiting global warming to 1.5 degrees and net zero emissions by 2050,” Mr Brait said.

QBE has declined to respond to the scorecard but referenced this year’s annual general meeting (AGM) in May where Chairman Mike Wilkins reiterated the insurer’s support for the Paris Agreement to curb global emissions.

“QBE certainly supports Paris,” Mr Wilkins said at the AGM in response to questions from pro-climate shareholders. “And we are moving towards a net-zero approach in our own operations through our investments… [and] also in our underwriting portfolios by 2050.”

Signing up to the Net-Zero Insurance Alliance showed the company was “definitely on a pathway to net-zero” by 2050 in all of its underwriting portfolios, he told the meeting.

“So I do not agree with your assessment that we are paying lip service only,” Mr Wilkins said. “We believe that we have made significant efforts and will continue to make those efforts towards a net-zero future.”

He said QBE is “very clear” regarding its climate position.

“We acknowledge climate change is a material risk to our business and we take it seriously,” Mr Wilkins said. “Climate change is a significant global challenge that requires the collaborative efforts of many stakeholders to deliver an orderly transition to a net zero emissions economy.”

Click here for the 2022 scorecard.