Press Release
Paris, February 17th 2022 – Following in the footsteps of French bank La Banque Postale (1), CNP Assurances has committed to ending new investment in companies developing new oil and gas projects, both conventional and unconventional (3). Reclaim Finance welcomes this best practice policy and calls on financial players to follow CNP Assurances’ lead and to cease their support for oil and gas expansion.
CNP Assurance’s new policy builds on the key conclusion of the International Energy Agency’s net zero scenario (4) and ends all support for oil and gas expansion:
- Stop all new direct Investment in upstream oil and gas developers
- Cease all financing for new oil and gas exploration or production projects
- Strengthen dialogue with oil and gas developers currently in CNP’s portfolio and demand that immediately stop any new exploration or production project (both conventional or unconventional).
These new restrictions follow CNP Assurances’ commitment to achieving carbon neutrality of its portfolio by 2050 by joining the Net-Zero Asset Owner Alliance (5).
Louis-Maxence Delaporte, fossil free finance campaigner at Reclaim Finance comments: “This is cause for celebration: a major French investor sets another precedent for the international finance community by ending any support to oil and gas expansion. More than 450 banks, insurers and investors have now joined the Glasgow Financial Alliance for Net Zero but close to none are tackling oil and gas expansion, a minimal requirement to stop fuelling the climate crisis. Even financial institutions that have recently strengthened their oil and gas restrictions, – such as Amundi or AXA – can still invest in and insure companies developing new oil and gas projects even though they don’t fit into the 1.5°C carbon budget we have left.”
In terms of investor dialogue and shareholder engagement with fossil fuel companies, CNP Assurances’ announcement is also a step in the right direction since it clearly identifies the halt in oil and gas expansion as the main request to be addressed to companies in the sector and extends this demand for all production, conventional and unconventional.
Guillaume Pottier, stewardship campaigner at Reclaim Finance, adds: “By requesting that companies they invest in immediately halt oil and gas expansion, CNP Assurances’ policy becomes best practice and a case in point that serious engagement strategies and ambitious exclusions go hand in hand. The direction of travel is clear: systematically vote against companies developing new fossil fuel projects and gradually divest from those that stick to their climate-threatening plans.”