Convex speaks out on Adani coal mine issue

Campaign group offers its reaction

Convex speaks out on Adani coal mine issue


By Terry Gangcuangco

Like many others before it, international specialty (re)insurer Convex has been a target of climate campaigners, particularly in relation to its supposed attachment to the Adani coal mine in Australia. Now, the company has clarified its stance.

In a statement published yesterday (February 01), Convex explained: “Client confidentiality is a fundamental principle at Convex and, as such, it is our policy, along with many other financial institutions, not to comment publicly about our clients or any specific risk.

“However, we feel obliged to correct inaccurate and misleading information concerning our alleged involvement in a new coal mine in Australia, which has been published both on social media and copied, unchecked, in certain media outlets.”

The firm – whose bases span London, Bermuda, and Luxembourg – went on to assert: “Unfortunately, this campaign has the potential to unfairly affect a number of our environmental and sustainability partners, connected with the recently announced Convex Seascape Survey.”

The Convex Seascape Survey is a five-year global research programme manned by ocean and blue carbon scientists whose collective goal is to build a greater understanding of the properties and capabilities of the ocean and its continental shelves as part of the carbon cycle.

“In our view,” declared Convex, “it would be a terrible irony if a science research project of this importance was impacted by a false rumour about the insurer that sponsors it.

“Therefore, we would like to confirm that, in line with our ESG (environmental, social, and governance) policy, we will not insure the construction or operation of any new thermal coal mine and/or its dedicated infrastructure.”

Meanwhile, according to the Stop Adani campaign, Convex becomes the 43rd insurer to rule out underwriting of the controversial mine.

Commenting on the development, Market Forces campaigner Edoardo Riario Sforza said: “Convex’s decision to stop insuring new thermal coal mines and their associated infrastructure means it has finally ruled out insurance for Adani’s disastrous Carmichael coal project in Australia.

“Every insurance company on earth should be running a mile from Adani’s climate-wrecking coal mine. The fact there are now 43 major insurers on the public record saying they won’t touch the Carmichael project demonstrates the reputational risk any company associated with it faces.”

Riario Sforza added that all eyes are now on Helvetia Group and Lloyd’s.

“Helvetia needs to clarify its current and intended future relationship to the Adani Carmichael project, while Lloyd’s must now confirm that no syndicate of the Lloyd's market will issue new, or renew existing, insurance for the Adani Carmichael coal mine and associated infrastructure,” he urged.

Insurance Business has reached out to Adani for reaction – the story will be updated accordingly when a response is received.

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