SEC Upholds Landmark Shareholder Proposals to Chubb and Travelers Seeking to Reduce Company's Scope 3 Climate Emissions
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609
BERKELEY, CA—MARCH 5, 2022—On March 31, the U.S. Securities and Exchange Commission (SEC) ruled that As You Sow’s shareholder proposal to Travelers insurance company, asking the company to address its Scope 3 financed emissions, can move forward to a vote at the company’s annual general meeting.
This follows a similar decision for a climate proposal to Chubb Limited last week. As You Sow’s proposals ask the companies to report whether and how each intends to measure, disclose, and reduce the greenhouse gas emissions associated with their underwriting, insuring, and investment activities, in alignment with the Paris Agreement's 1.5º C goal requiring net-zero emissions. The U.S. insurance industry invested $582 billion in fossil fuel-related activities in 2019, an increase from $519 billion in 2018.
“With this ruling, the SEC allows investors to address the growing climate risk associated with insurers' high carbon underwriting and investing activities,” said Danielle Fugere, president of As You Sow. “This is a watershed moment. The insurance industry must be accountable for reducing its financed emissions and taking a leadership role in transitioning to a net-zero economy.”
Insured losses from natural disasters reached $42 billion in the first six months of 2021 — a 10-year high. Chubb reported pretax catastrophe losses of more than $1 billion last year and Travelers reported more than $800 million in losses.
Chubb and Travelers both contended in filings to the SEC that, among other things, the proposals’ requests were substantially implemented and it is impossible for the companies to measure, disclose, and begin addressing their financed emissions.
“We heard similar excuses from banks before they started measuring their financed emissions last year and adopted Paris-aligned goals,” said Fugere. “Chubb and Travelers are highly sophisticated entities that can certainly adopt measurement plans, identify their high-carbon financing activities, and develop reduction policies.”
This decision from the SEC follows a release of draft climate-disclosure rules for companies, which included a requirement for material Scope 3 emissions disclosure. The UN estimates that for a financial institution, these Scope 3 financed emissions can make up 97% of its total emissions.
Chubb and Travelers’ annual general meetings will take place in May.
# # #
As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.