Archived press release

Foe pickets general accident agm to stop investments in shell

23 April 1997

PHOTOCALL
Protesters outside General Accident AGM
from 10.30 am at General Accident HQ, Pitheavlis bldg, Perth, Scotland

Friends of the Earth International (FOEI) will today (Wednesday 23 April 1997) urge 'green' insurance company General Accident to stop investing in climate-wrecking companies such as Shell. Campaigners will demonstrate outside General Accident's AGM in Perth, Scotland[1], and will take part in the meeting as shareholders.

Friends of the Earth International will ask General Accident to withdraw its considerable investments in Shell, a key member of the Global Climate Coalition (GCC), which is an umbrella lobbying group for the fossil fuel industry [2]. The GCC is blocking international agreements for reducing greenhouse gas emissions at key climate talks this year, in an attempt to protect the interests of the fossil fuel sector. Friends of the Earth is supporting the proposal by the Alliance of Small Island States [3] for industrialised nations to reduce carbon dioxide emissions by 20 per cent by 2005, but GCC members such as Shell are blocking this proposal.

General Accident is a major shareholder in Shell, with investments worth over 100million[4]. However, it is also a signatory to the United Nations 'Statement of Environmental Commitment by the Insurance Industry' which supports action to prevent climate change[5]. In 1995 GA said that more "weather related losses" contributed to increased underwriting losses of 59 million.

Anna Stanford, Friends of the Earth's Fossil Fuel Campaigner, said:

"Companies like Shell are scuppering international efforts to prevent dangerous climate change. With large sections of the human population likely to suffer from

the impacts of changing weather patterns, we urge General Accident to alter its investment practices. If General Accident really does wish to promote sustainable development it should withdraw funds from Shell until it promises to stop lobbying against agreements to protect the global climate."

This action marks the start of a campaign by Friends of the Earth targeted at insurance companies in the run-up to the Kyoto Climate Summit in December 1997 [6]. Insurance companies are set to suffer financially from some of the predicted impacts of global climate change, such as floods, severe storms and drought.

ENDS

NOTES TO EDITORS:

[1] General Accident HQ, is on the outskirts of Perth on the Glasgow Road, next to United Distillers. Easiest way to get there is by cab from the station (5 mins).

[2] The Global Climate Coalition is a US-based umbrella lobbying organisation for the fossil fuel industry, comprising of oil, coal, gas, electricity and car companies. According to Executive Director John Shlaes "We represent virtually all of US manufacturing, and our members comprise almost 40 percent of the US economy." It specialises in intervening in climate change negotiations using scientific and economic arguments to block action on reducing greenhouse gas emissions. A detailed briefing on the GCC is available from Friends of the Earth.

[3] The Alliance of Small Island States (AOSIS) includes island nations like The Maldives, Trinidad &Tobago, Mauritius and the Seychelles, and will be among the first nations to feel the worst effects of climate change, particularly sea level rise and severe storms.

[4] Based on their Unit Trust portfolio, we estimate that 2.5% of their total funds under management (5.7 billion) is invested in Shell. FOE estimates that this is one of the largest investments in GA's portfolio.

[5] The United Nations Environment Programme 'Statement of Environmental Commitment by the Insurance Industry' has been signed by more than fifty insurance companies. It sets out principles of sustainable development, environmental management and public awareness and communications. It states that "economic development needs to be comparable with human welfare and a healthy environment" and that to ignore this "is to risk increasing social, environmental and financial costs." General Accident was on the Steering Committee developing the statement.

[6] In December 1997 the signatories to the Framework Convention on Climate Change will meet for the third Conference of the Parties (COP3) in Kyoto, Japan. Governments will consider proposals for the future implementation of the Convention including targets for the reduction of anthropogenic carbon dioxide emissions (and possibly other greenhouse gases) within specified time frames.

[Index]

---

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust