Just like their banking colleagues at BNP Paribas, AXA is also to phase out coal from business activities by 2030 in OECD states and by 2040 around the world, the insurance giant announced yesterday.
AXA is a French multinational insurance firm that engages in global insurance, investment management, and other financial services, and their new climate strategy is launched as a 'new global benchmark for best practice'
The AXA Group operates primarily in Western Europe, North America, the Asia Pacific region, and the Middle East, with a presence also in Africa.
In a move hailed by climate campaigners as setting "a new global benchmark for best practice", AXA said it will encourage coal companies to produce a coal phase-out plan by 2021 and use its position as a shareholder to accelerate the shutdown of existing coal plants.
It also promised to stop selling insurance contracts - bar those covering employee benefits - to clients developing new coal projects larger than 300MW.
The moves are all part of AXA's plan to align its business with a 1.5C warming trajectory, the stretch target in the Paris Agreement.
AXA said its current investments have 3.1C of 'warming potential', well above its target of 1.5C by 2050 which would put it in line with the aims of the Paris Agreement.
As such it yesterday promised to double its green investments to €24bn by 2023 in an effort to accelerate the decarbonisation of its portfolio.
"Today we are launching a new phase in our climate strategy to accelerate our contribution to the transition towards a low-carbon and resilient economy, notably by focusing our sustainable finance efforts towards the energy transition of major industries," said CEO Thomas Buberl. "We are convinced that it is an absolute priority if we want to reach the objectives of the Paris Agreement."