Paris, 27 June 2023 – French insurance company, AG2R LA MONDIALE, has committed to stop investing in oil and gas companies developing new oil and gas fields from 2027, and is calling on the companies to stop expanding oil and gas production (1). Reclaim Finance has welcomed the new measures and calls on AG2R LA MONDIALE to go one step further and immediately stop purchasing new bonds from companies still developing new oil and gas fields. While a growing number of financial institutions have adopted measures against oil and gas expansion, Reclaim Finance is urging greater momentum to avoid some of the biggest players from being left behind.
One year after announcing that it would exit companies involved in the unconventional oil and gas sector by 2030 (2), AG2R LA MONDIALE has today announced new measures aimed at companies in the oil and gas production sector (3). The measures clearly call for a halt to the development of new oil and gas fields (4). The group has indicated that it will consider voting against the remuneration of directors and management at annual general meetings (AGMs) if this request is not complied with, and failure to comply by 2027 will result in divestment (5).
AG2R LA MONDIALE has made welcome progress since last year. The insurer has finally recognised that it is no longer possible to provide unreserved support for oil and gas companies developping new projects such as Eni or TotalEnergies, let alone to do so in the name of the transition. AG2R LA MONDIALE is making it very clear that oil and gas companies such as TotalEnergies must reduce their investments in fossil fuels, increase their investments in renewables and, above all, refrain from developing new oil and gas fields.
Antoine Laurent, Reclaim Finance’s French advocacy lead
AG2R LA MONDIALE joins the dozen or so French financial players who have taken action against oil and gas expansion (6). But some heavyweight financial institutions have been slow to bring their practices into line with their commitment to the climate. Among the French laggards are Crédit Agricole Assurances and Crédit Mutuel Asset Management, as well as the other investment and banking subsidiaries of the BPCE and Société Générale groups (7). While the CEO of the Crédit Agricole Group has acknowledged the need to halt the expansion of oil and gas production in order to limit global warming to 1.5°C, none of its subsidiaries has adopted a policy that reflects that.
AG2R LA MONDIALE joins the group of leaders, but the insurer still has to run the distance. It must follow the example of CNP Assurances and MAIF and immediately suspend all new bond purchases from companies involved in oil and gas expansion to avoid being an accomplice.
Antoine Laurent, Reclaim Finance’s French advocacy lead
AG2R LA MONDIALE has also indicated that it expects companies to adopt a clear strategy for reallocating investments in favor of renewable energies, and to consult their shareholders on a detailed climate plan (8) at their AGMs. Failure to comply with these demands could lead to sanctions being imposed at AGMs. Reclaim Finance is calling for this vote to be made systematic for any company that does not meet AG2R LA MONDIALE’s criteria, and for all its votes to be published.
