QBE Insurance Group is pushing ahead with the “orderly transition” of its business towards climate goals set by the Paris Agreement and is aiming to have more women in its leadership and board ranks, Chairman Mike Wilkins told shareholders at today’s AGM.

“Make no mistake, the board acknowledges that climate change is a material risk for QBE,” he said. “We are proud of our commitment towards addressing this and the progress we have made.

“We support the Paris Agreement and its objective to limit global temperature rises to well below 2 degrees Celsius to mitigate against the impacts of climate change.”

He says from January 1 next year for existing clients who derive at least 30% of their revenues from oil sands and Arctic drilling, the insurer will only provide insurance if they are on a pathway "consistent” with achieving the carbon emission reduction targets as set by the Paris accord.

Similar underwriting criteria will apply from January 2030 for companies with 60% or more revenue from oil and gas extraction.

Mr Wilkins says QBE will “decline to provide insurance” if the criteria is not met.

“This [oil and gas extraction] threshold will be reduced to 30% from January 1 2040,” Mr Wilkins said. “In the period leading up to these target dates, we will continue to work with our oil and gas customers as they transition in accordance with the Paris Agreement.”

He says the insurer has no direct investments in oil sands and Arctic drilling projects.

The business does still have a “small" existing exposure to oil and gas companies in its direct investment portfolio and will “seek to reduce” it by 2050, Mr Wilkins says.

Later in the meeting shareholders again overwhelmingly rejected a resolution demanding the business set fossil fuel exposure reduction targets.

The resolution, promoted by shareholder Australian Ethical and requisitioned by a group of other investors, is similar to the one last year that was also voted down by shareholders.

QBE had urged shareholders not to back the resolution.

“The board believes that it is essential that we continue to work through our analysis and strategic decisions in a methodical and coordinated way,” Mr Wilkins said. “In light of the significant progress we have made in recent years, and our strong analytical foundation for future strategic decision making, the board recommends shareholders vote against this resolution.”

Moving to diversity and inclusion, Mr Wilkins says the business is now aiming to have 40% of its leadership roles filled by women.

“We came close to achieving our goal of having 35% women in leadership by 2020 with 34.8% and we achieved our target of having 30% women on the group board,” Mr Wilkins said. “However, we know there is more to do and have since developed a new target of having 40% women in leadership and on the Group Board by 2025.”