Pro-climate action QBE shareholders have again requisitioned a resolution at its upcoming annual general meeting (AGM) in May to push the insurer into disclosing fossil fuel reduction targets and plans for moving away from underwriting of oil and gas assets.

The insurer announced today in an investor update that the board “welcomes” the dialogue on these “important matters” and will give the proposed resolution “thorough consideration” before providing its recommendations to shareholders early next month.

The resolution co-filed by shareholder Australian Ethical is similar to ones it has submitted in past AGMs. These failed at the ultimate hurdle as they did not garner enough votes from other investors to support the proposed measure.

The climate resolution requests QBE “disclose, in subsequent annual reporting, short, medium and long-term targets and plans to reduce investment and underwriting exposure to oil and gas assets, along with progress against the targets set”.

Additionally the targets should be consistent with the climate goals of the Paris Agreement.

In the last few AGMs, the QBE board has recommended shareholders not to back such climate disclosure measures.

A QBE spokesman says under the insurer’s Environmental and Social Risk Framework that became effective on January 1, the business is committed to reducing its exposure to higher transition risks in the energy sector.

These include no new coal and oil sands projects, and only supporting oil sands and Arctic drilling where the company is on a pathway consistent with achieving the Paris Agreement objectives, the spokesman told insuranceNEWS.com.au.

The spokesman says QBE has committed to net-zero emissions across its operations, investment and underwriting portfolios.

“We are working through what this means for our business and have disclosed a number of targets for our operations and investments,” the spokesman said.

“We will set our intermediate targets for underwriting in line with the timing set out as part of our commitment to the Net-Zero Insurance Alliance.

“An exclusionary approach to all fossil fuel‑related activity, including oil and gas, on a categorical basis does not represent an orderly path to a net‑zero economy.”

However, Australian Ethical Head of Ethics Research Stuart Palmer says QBE needs to step up.

“We need to see greater action from QBE on oil and gas,” he said. “That means stopping underwriting the expansion of oil and gas.

“QBE has fallen behind peers in the insurance industry in taking action, despite the growing financial impacts of climate change on the industry.”