Spain’s Mapfre to curtail oil, gas, coal insurance and investment

(Reuters) — Spain’s Mapfre said it will not insure or invest in oil, gas and coal producers unless they have a plan to transition from fossil fuels, after similar moves by competitors.

“As insurers, we can help our clients to transition in a gradual way towards less polluting activities,” Mapfre CEO Antonio Huertas told shareholders Friday.

Mapfre will fulfill insurance contracts until they expire and will tie possible renewals to an analysis of fossil fuel companies’ transition plans, a spokesman said.

“It applies to new projects, because we always comply with what is agreed with customers,” the spokesman said.

Mapfre has an insurance contract with Mexican state-owned oil company Pemex, which is investing heavily into increasing crude output, which in turn would lead to more carbon emissions.

The contract with Pemex is due to expire next year.

Mapfre is following rivals such as France’s Axa and Hannover Re, with insurers taking a leading role in how the finance industry tackles climate change since damage caused by extreme weather directly hits their bottom lines.

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