AXIS Capital Commits to Science-Based Aligned Scope 1 and 2 Greenhouse Gas Reduction Goals to Support Transition to Low-Carbon Economy

Rhea-AI Summary

AXIS Capital Holdings Limited (NYSE: AXS) announced its commitment to a 50% reduction of Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, aligning with the Paris Agreement goals. This objective, based on a 2019 baseline, supports AXIS's transition towards a low-carbon economy. President and CEO Albert Benchimol highlighted recent investments in renewable energy and the aim to phase out thermal coal and oil sands by 2040. The company will implement measures such as optimizing its real estate portfolio to achieve these targets. AXIS's broader climate strategy includes various sustainability initiatives.

Positive

• Commitment to a 50% absolute reduction in Scope 1 and 2 GHG emissions by 2030.
• Alignment of GHG reduction targets with the Paris Agreement.
• Investment in renewable energy and other sustainability efforts.
• Phasing out thermal coal and oil sands businesses by 2040.

Negative

• None.

PEMBROKE, Bermuda--(BUSINESS WIRE)-- AXIS Capital Holdings Limited (“AXIS Capital” or the “Company”) (NYSE: AXS) today announced its commitment to a 50% absolute reduction of Scope 1 and 2 greenhouse gas (GHG) emissions by 2030 across its global operations. The action is the Company’s latest step in its ambition to transition to a low-carbon economy. Using a 2019 baseline, AXIS’s science based GHG reduction targets are in line with the goals of the Paris Agreement – to limit global warming well-below 2°C above pre-industrial levels.

“As a specialty insurer and reinsurer that operates in the property and casualty space, we see first-hand the importance of mitigating climate risk and supporting the transition to a low-carbon economy,” said Albert Benchimol, President and CEO of AXIS Capital. “I am proud of the actions AXIS has taken to date, such as investing in our Renewable Energy business and significantly limiting new thermal coal and oil sands business from our insurance, facultative reinsurance and investment portfolios, with a goal to fully phase these out by 2040 globally. Our alignment to science-based GHG reduction targets in our global operations is the latest step in our journey.”

Example actions the Company will take to achieve Scope 1 and 2 emissions reductions include optimization of the AXIS global real estate portfolio and identification of efficiencies in facilities management.

These commitments are one element of the broader AXIS climate strategy driven by its Corporate Citizenship program. Commitments complement and build upon recent AXIS climate actions such as:

• Value chain initiatives:
  • Underwriting and Investment:
    • Continued investment in Renewable Energy insurance business
    • Completion of audit of our (re)insurance portfolio’s climate risks and opportunities across product lines
    • Publication of ESG Investment Policy in 2022, which includes climate factors
    • Phase out of thermal coal business from insurance, facultative reinsurance, and investment portfolios by 2030 in OECD countries and the EU and 2040 globally, and significantly limit new business related to oil sands and the exploration, production and transportation of oil and gas in the Arctic National Wildlife Refuge. See this link for the full policy
  • Supply Chain: Signatory of global pledge for sustainable supply chains through the Sustainable Markets Initiative Insurance Task Force, of which AXIS is a member
  • Employee Commuting: Transition to global hybrid work model in light of the COVID-19 pandemic. Launch of benefit programs, such as an initiative in the United Kingdom to incentivize the use of electric cars
• Disclosure: Publication of first Task Force on Climate-Related Financial Disclosures (TCFD)-aligned report in 2022, addressing year-ended December 31, 2021. Find the AXIS TCFD report, as well as AXIS reporting aligned with the Sustainability Accounting Standards Board (SASB), on the Company website
• Research and Development: Conducted climate stress tests and continued evaluation of climate-related data through AXIS’s Exposure Management Centre of Excellence (“EMCE”) (formerly known as the NatCat Centre of Excellence) to advance our understanding of risk
• Partnership and Engagement: Membership in organizations such as the Lloyd’s Sustainable Markets Initiative Insurance Task Force and Insurance Development Forum, along with more than 75% of local giving in 2022 tied to AXIS ESG focus areas of climate and Diversity, Equity and Inclusion (DEI)

“A core value at AXIS is delivering on our promises, and we proudly hold ourselves accountable to GHG reduction goals,” said AXIS General Counsel and Executive Committee Corporate Citizenship Sponsor Conrad Brooks. “We as individuals, as an organization, and as a society all have a role to play in mitigating climate risks.”

AXIS GHG assessments for 2019 through 2021 are available at axiscapital.com.

About AXIS Capital

AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders’ equity of $4.6 billion at December 31, 2022, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor’s and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005657/en/

Investors

Miranda Hunter

(441) 205-2635

investorrelations@axiscapital.com

Media

Nichola Liboro

(212) 940-3394

Nichola.liboro@axiscapital.com

Source: AXIS Capital Holdings Limited

FAQ

What is AXIS Capital's target for GHG emissions reduction?

AXIS Capital aims for a 50% reduction in Scope 1 and 2 greenhouse gas emissions by 2030.

How does AXIS Capital plan to achieve its emissions reduction targets?

The company plans to optimize its global real estate portfolio and identify efficiencies in facilities management.

What is the baseline year for AXIS Capital's emissions reduction commitment?

The baseline year for AXIS Capital's emissions reduction commitment is 2019.

What is AXIS Capital's strategy regarding thermal coal and oil sands?

AXIS Capital intends to phase out thermal coal by 2040 globally and significantly limit new business related to oil sands.

What is the significance of AXIS Capital's GHG reduction targets?

The targets are aligned with the Paris Agreement goals to limit global warming to well-below 2°C.