QBE will face more pressure to act on carbon emissions when its annual general meeting is held in May.

Climate campaigner Market Forces today announced plans to lodge a shareholder resolution demanding the insurer sets targets to reduce its investment in and underwriting exposure to fossil fuel-linked businesses.

The targets must be in line with Paris climate agreement goals.

Market Forces is joining with wealth manager Australian Ethical to submit the resolution.

The group tabled a resolution at last year’s AGM with another investor requiring QBE to disclose details of its exposure to climate change risks.

“Disclosure is not enough,” Market Forces member Pablo Brait said. “QBE also needs to manage and eliminate its climate risks.

“An obvious step would be to end funding and underwriting of fossil fuels, which cause their own multibillion-dollar losses by fuelling extreme weather.

“While other insurers are restricting their underwriting of coal as an initial response to climate change devastating their bottom lines, QBE’s approach is a clear case of corporate masochism.”

Australian Ethical wants QBE to match its peers in addressing the climate challenge.

“Underwriting or investing in new fossil fuel infrastructure today will warm the planet for decades to come,” Head of Ethics Research Stuart Palmer said.

“Other insurers and banks around the world have set clear restrictions and targets, recognising the challenges to their business and to society from dangerous climate change.

“Investors want to see the same from QBE.”