AXA commits to development of renewable energy in Europe

AXA, Europe’s second-largest insurer, is making a commitment to the development of renewable energy in Europe, given that 75% of its buildings and data centers’ energy use is based in Europe.

AXA has signed a ten-year Virtual Power Purchase Agreement (VPPA) with IGNIS, a Spanish integrated renewable energy group. A VPPA makes it possible both to contribute to the equivalent of all or part of a consumer's energy needs and to supply the grid with renewable electricity.

The contract signed by AXA concerns a solar power plant in Spain, in the Andalusia region, where construction will begin shortly, with the objective of being operational by May 2025.

Under the agreement, AXA undertakes to purchase 90% of the renewable electricity produced by this future power plant, i.e. 84 GWh per year. This, it said, is equivalent to the electricity consumption of the buildings and data centers of the Group's European entities.

Schneider Electric, an advisor on global corporate renewable energy procurement, supported AXA in the selection of their projects and negotiations in the VPPA.

The move follows the announcement of AXA’s new decarbonisation targets for both its insurance and investment portfolios, including reducing the carbon intensity of the most material personal motor portfolios in the Group by 20% by 2030 compared with the 2019 baseline, and a 30% drop in absolute carbon emissions of the group’s largest commercial insurance clients by 2030 compared with a 2021 baseline.

Alexander Vollert, group COO and CEO of AXA Group Operations (AXA GO), said: “The energy consumption of our buildings and the digital sector currently account for the largest share of the carbon footprint associated with our own operations. The environmental impact of this contract will be significant, as 75% of the electricity consumed by the Group's buildings and data centers is located in Europe. By signing a VPPA on this scale, AXA is confirming its climate ambitions by decarbonizing, among other things, its activities in these areas.”

Ulrike Decoene, group chief communication, brand and sustainability officer, added: “Thanks to this new initiative, AXA will further exceed its target of reducing CO2 emissions from its operations by 20% by 2025. By promoting the development of renewable electricity in the European mix, AXA is further demonstrating its full commitment for the transition to a low-carbon economy.”

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