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Insurance Giant Chubb Praised for Ban on Underwriting Arctic Refuge Drilling
While a Gwich'in Steering Committee leader said the policy "is a first for the American insurance industry and shows leadership to protect sacred lands," Chubb's board opposes climate and human rights shareholder resolutions.
Apr 10, 2023
An Indigenous organization on Monday applauded Chubb for joining global insurers and major banks in refusing to underwrite new fossil fuel development within the Arctic National Wildlife Refuge in Alaska.
"After the Arctic Refuge was opened for oil and gas development, we have met with and encouraged financial institutions and insurance companies to respect the people who live and thrive off this land, which we consider very sacred," explained Bernadette Demientieff, executive director of the Gwich'in Steering Committee.
"Since our first meeting, all corporate leaseholders have exited the refuge and every major U.S. and Canadian bank refuses to underwrite such projects," she said. "Chubb's policy is a first for the American insurance industry and shows leadership to protect sacred lands."
"The Gwich'in and the porcupine caribou herd depend upon Iizhik Gwats'an Gwandaii Goodlit," or the sacred place where life begins, "for our identity, our culture, and our ways of life," Demientieff added. "We and the animals we care for are intrinsically linked to this land, and we are grateful to Chubb for this policy."
\u201cGreat news from the @OurArcticRefuge--recent direct action pressure from @RAN @Public_Citizen @nychange @riseandresistny resulted in this win!\n\nWill the company rule out the North Brooklyn pipeline, Willow Project and other major US oil and gas? \n\nhttps://t.co/2WoiPO2meO\u201d— Mary Lovell (she/they) (@Mary Lovell (she/they)) 1681144344
The group pointed out Monday that though American International Group (AIG) early last month "announced a policy to not underwrite oil and gas projects in the Arctic, it was unclear whether this encompassed the Arctic Refuge," and the company "has not responded to outreach from the Gwich'in Steering Committee and allies" seeking clarification.
Chubb in late March announced new underwriting standards for oil and gas extraction projects. Along with adopting criteria for methane emissions, the company said at the time that "effective immediately, Chubb will not underwrite oil and gas extraction projects in protected areas designated by state, provincial, or national governments."
In Chubb's invitation and proxy statement for its upcoming annual general meeting, the company specifically mentions the Arctic Refuge:
Chubb has consistently been a proactive leader on climate risk management, including by being the first major insurer in the U.S. to announce a coal policy for its underwriting and investment activity in 2019; establishing an oil sands policy in 2022; adopting in 2023 a policy prohibiting underwriting oil and gas extraction projects in certain government-protected conservation areas, including the Arctic National Wildlife Refuge (ANWR), and we intend to develop further conservation criteria for the Arctic, mangroves, peatlands, key biodiversity areas, and recognized conservation areas that allow for resource use by the end of 2023.
That section of the statement details the Chubb board of directors' opposition to a climate-related shareholder proposal from the legal advocacy group As You Sow, filed on behalf of Warren Wilson College and co-filers Jubitz Foundation and the Meyer Memorial Trust.
As You Sow's proposal would require Chubb to issue a report disclosing medium- and long-term greenhouse gas targets for its underwriting, insuring, and investment activities in line with the 1.5°C temperature goal of the Paris climate agreement.
The company's board claims that "Chubb shares the proponent's goal of achieving a net-zero economy by 2050. We disagree that forcing Chubb to set targets related to the emissions produced by its insureds, rather than Chubb's own emissions, would advance that goal."
After the insurer unveiled its new underwriting standards in March, As You Sow president Danielle Fugere responded that "we are pleased to see Chubb begin to focus on climate and conservation-focused underwriting standards, yet question the impact these announced standards will have."
"Most large oil and gas companies have programs in place for methane-related 'leak detection and repair' and programs related to the 'elimination of non-emergency venting,'" she noted. "Whether Chubb's policy will change the actions of oil and gas companies or Chubb's own underwriting of oil and gas projects is therefore unclear."
"Chubb's own reporting will not answer that question," Fugere added. "Chubb does not currently report the greenhouse gas emissions associated with its insuring, underwriting, and investing activities so the company remains largely unaccountable to investors with regard to its climate contribution or its reduction of greenhouse gas emissions."
\u201cWe support @Chubb\u2019s new focus on climate and conservation-focused underwriting standards. However, until the insurer reports the greenhouse gas emissions associated with its activities, the company remains largely unaccountable to shareholders.\nhttps://t.co/n59iW4Jupz\u201d— As You Sow (@As You Sow) 1680534076
Liz Marin, missing and surviving Indigenous peoples director with Seeding Sovereignty, stressed last month that "Chubb is recognizing the importance of protected land in this policy, but there are so many sacred ecosystems that do not have protected area designations facing threats from oil and gas drilling. For example, it's unclear if this policy would be applicable to the recently approved Willow project on the North Slope of Alaska, which poses major risks to Iñupiaq communities and the land, water, and wildlife."
The Chubb board of directors is also encouraging shareholders to vote against a proposal from Domini Impact Investments LLC, as representative of the Domini U.S. Impact Equity Fund, that would require a report "describing how human rights risks and impacts are evaluated and incorporated in the underwriting process."
The board argues in part that "Chubb reports extensively regarding its policies and actions that implicate human rights and, therefore, complying with the proposal would be repetitive and impose an unnecessary burden on the company."
The Gwich'in Steering Committee, meanwhile, expressed support for the Domini proposal on Monday.
"We call upon investors to vote in favor of the shareholder proposal on human rights at Chubb's annual general meeting on May 17," said Demientieff. "Companies cannot divide our people from this sacred place. We must be involved in all decisions where there are impacts to our land, animals, and communities. We call on Chubb and all companies to respect our rights, including our right to free, prior, and informed consent."
In 2021, the Biden administration launched a review of its predecessor's controversial decision to open up ANWR to fossil fuel drilling. While Indigenous and climate groups welcomed that move, they continue to call for permanent regional protections. More recently, many organizations and campaigners have also criticized the current administration for approving the Willow project.
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Advocates Cheer Revival of Bill to 'Restore Critical Protections' to Arctic Refuge
"We need a law on the books that will affirm these lands are not for sale, preserve the wilderness of the Coastal Plain, and uphold the sovereignty of Arctic Indigenous peoples," said Sen. Ed Markey, one of the bill's lead sponsors.
Feb 01, 2023
Indigenous, climate, and conservation advocates on Wednesday welcomed the reintroduction of congressional legislation to restore protections and prevent fossil fuel development in Alaska's Arctic National Wildlife Refuge.
Sens. Ed Markey (D-Mass.), Maria Cantwell (D-Wash.), Martin Heinrich (D-N.M.), and Michael Bennet (D-Colo.), along with Reps. Jared Huffman (D-Calif.) and Brian Fitzpatrick (R-Pa.), reintroduced the Arctic Refuge Protection Act, the continuation of legislative efforts dating back to the 1980s to protect the critical wilderness and its inhabitants.
The lawmakers said in a statement that their bill "will restore critical protections to the Arctic National Wildlife Refuge—home to the Gwich'in people and the nation's largest national wildlife refuge—by designating the Coastal Plain ecosystem as wilderness under the National Wilderness Preservation System."
If passed, the bill "would permanently halt any new oil and gas leasing, exploration, development, and drilling on the Coastal Plain, and would safeguard the subsistence rights of the Arctic Indigenous peoples who depend upon the unique ecosystem within the Arctic Refuge," the statement explained.
As Huffman's office noted:
The Arctic National Wildlife Refuge covers 19.6 million acres and is the largest unit in the National Wildlife Refuge System. The 1.56 million-acre Coastal Plain, the biological heart of the refuge, contains the calving grounds for the Porcupine caribou herd and is home to denning polar bears, musk oxen, wolves, and more than 150 species of migratory birds. The 9,000-strong Gwich'in Nation, living in Alaska and Canada, make their home on or near the migratory route of the Porcupine caribou herd, and have depended on this herd for their subsistence and culture for thousands of years.
"The Arctic National Wildlife Refuge is a national treasure and a cultural and spiritual home for Arctic Indigenous peoples," said Markey. "The traditional relationship that the Gwich'in and Iñupiat have had with the refuge for generations, as well as the singular ecosystem on the Coastal Plain, should not be put into harm's way because of old failed promises of a fictional financial windfall."
"We need a law on the books that will affirm these lands are not for sale, preserve the wilderness of the Coastal Plain, and uphold the sovereignty of Arctic Indigenous peoples—who must be consulted regarding the use, management, and conservation of the Coastal Plain," he added.
"The Arctic National Wildlife Refuge is a national treasure and a cultural and spiritual home for Arctic Indigenous peoples."
Karlin Itchoak, Alaska regional director for the Wilderness Society, stated that the bill "recognizes not only the importance of protecting wildlife and public land, but also shows respect and concern for the Indigenous peoples who live in and near the Arctic National Wildlife Refuge."
"The Coastal Plain of the refuge is sacred to the Gwich'in Nation, and the Iñupiat people have stewarded this land since time immemorial," Itchoak added. "Protecting the Coastal Plain from oil drilling is essential to their cultures, food security, and ways of life, as well as to the global climate."
Some Indigenous and conservationist activists expressed their deep disappointment last year after congressional Democrats excluded Arctic protections from their $430 billion budget reconciliation package. Protections including a measure to end the Trump-era mandate for oil and gas leases on the Coastal Plain were included in the Build Back Better package that made it no further than passage by House Democrats in 2021.
The lawmakers said the reintroduced bill "would enshrine the protections sought by President [Joe] Biden on his first day in office, which were reaffirmed last June when the administration temporarily suspended drilling lease sales in the Arctic refuge."
However, they stressed that "the Coastal Plain ecosystem remains at risk due to oil and gas lease sales mandated by the 2017 Tax Cuts and Jobs Act"—also known as the Republican Tax Scam—signed into law by then-President Donald Trump. Such lease sales ultimately generated little interest.
The reintroduction of the Arctic Refuge Protection Act came on the same day that the Biden administration's Bureau of Land Management infuriated climate advocates by publishing an environmental assessment recommending partial approval of ConocoPhillips' Willow Project, a major drilling initiative on Alaska's North Slope, which contains much of the Arctic National Wildlife Refuge.
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