Archived press release

Totally irresponsible. erica oil spill: FOE criticises insurance industry

18 February 2000

Friends of the Earth (FOE) today criticised leading insurance funds for putting ordinary peoples'money into the company responsible for the Erika oil spill off Brittany. FOE has called on the insurance industry to stop investing in environmental destruction and to invest only in those corporations meeting environmental and social best practice. FOE today publishes a new report "Totally Irresponsible: What the insurance industry should do in the wake of the Erika oil spill".

Leading funds have invested in TotalFina to varying degrees including: Prudential Assurance, Standard Life Assurance, CGU, Norwich Union Life and Pensions, Equitable Life Assurance Society, AXA Sun Life, Legal and General Group, Royal and Sun Alliance,Scottish Equitable plc, Barclays Life Assurance Ltd, Clerical Medical and General Life Assurance Society and Friends' Provident Life Office. All of these investments were made at a time when TotalFina has been operating poor standards for its operations - especially chartering shipping to carry its toxic cargo.

The Erika spill has caused devastation to 400km of the Breton coast and killed hundreds of thousands of birds - including many that breed around the UK. TotalFina has lower standards for ships that carry its cheaper cargo. It also operates lower standards for cargoes undergoing shorter journeys. Furthermore, both Shell and BP rejected the Erika as a potential carrier for their cargoes as they have higher shipping standards.

Matt Phillips, wildlife campaigner at Friends of the Earth, said:
"It's amazing that the insurance industry foots the bill for oil spills, yet leading funds are putting ordinary people's money behind corporations whose policies result in disasters like the Erika. Insurance firms must invest in best practice.TotalFina has been criticised for its activities in Burma over many years, it is part of an industry that has caused climate change and has lower shipping standards even than its competitors. It's time the insurance industry took a responsible stance and thought more carefully about how and where they invest."

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Published by Friends of the Earth Trust