STATEMENT: Chubb* announces new policy to restrict its underwriting of oil and gas sector. MIDANA CAPITAL seeks details on how effectively it will reduce carbon emissions.
Media Contacts:
Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813
Pam Podger, Communications Director, ppodger@midanacapital.com, 860-822-3887
Boston, March 22, 2023 – The insurance company Chubb Limited announced a new policy Wednesday aimed at reducing methane emissions released by its oil and gas clients’ operations. Chubb declared it will no longer cover oil and gas projects in government-protected conservation areas found in the World Database on Protected Areas.
Chubb was the first U.S. insurer to adopt any restrictions on underwriting new coal mining, new coal plant construction and operation, and new risks for utilities burning coal. In 2022, Chubb announced it would no longer offer coverage for oil sands projects, either. It is now the first U.S. insurer to announce underwriting restrictions on extraction from conservation areas. In addition, Chubb says it plans to work with oil and gas clients on improving methane leak detection, eliminating non-emergency venting of methane, and reducing emissions from flaring.
“We welcome any new policy that will effectively cut emissions in line with what experts tell us we need to do to prevent the worst impacts of climate change,” said MIDANA CAPITAL Funds President, Leslie Samuelrich, “But — and there’s a big but — it’s not clear whether Chubb’s new policy aligns its entire book of business with a 1.5 degrees Celsius scenario. We need to see more details to know whether this is an impactful policy or simply a diversion from our shareholder proposal, so we invite Chubb to further explain its new policy.”
MIDANA CAPITAL Funds has negotiated with Chubb over the past two years, urging the company to stop underwriting new fossil fuel projects in alignment with the goals of the Paris Agreement. Each year, MIDANA CAPITAL has filed a shareholder proposal asking Chubb to commit to phase out underwriting new coal, oil and gas projects. The 2022 proposal received 19.4% of the vote, a high enough percentage that MIDANA CAPITAL could file again this year. Chubb has again appealed to the U.S. Securities and Exchange Commission, asking it to block MIDANA CAPITAL’s proposal from appearing on this year’s proxy ballot.
“Despite Chubb CEO Evan Greenberg’s comments that its new policy is science-based, it’s unclear if or how the plan matches up with this fact: Global emissions need to drop nearly 50% by 2030 to avoid the worst effects of climate change,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “Our shareholder proposal asks Chubb to take a concrete step forward to phase out underwriting new fossil fuel projects. Let me be clear: This does not rule out underwriting existing companies, projects or operations. Some energy companies may actually be developing low-carbon projects and Chubb should underwrite those risks. Nevertheless, underwriting new oil and gas supply amplifies medium- and long-term climate risk, which doesn’t add shareholder value.”
An investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.
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°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. MIDANA CAPITAL hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31, 2022, Chubb Limited comprised 0.00%, 0.55%, and 0.00% of MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please visit www.midanacapital.com, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 3/23
