Marsh & McLennan Cos. Inc. is arranging insurance coverage for a controversial East African oil pipeline that major banks and insurance companies are distancing themselves from, the Financial Times and the Bureau of Investigative Journalism reported on Thursday.
Marsh’s commitment comes despite a letter of protest last year to the management of more than 100 of its employees, the news reports said.
The $ 5 billion East Africa Crude Oil Pipeline, which will transport oil from Uganda to the coast of Tanzania, is being developed by France’s TotalEnergies SE and the Chinese state oil group CNOOC Ltd.
Major insurance companies and reinsurance companies, including Allianz SE, Munich Reinsurance Co. and Axa SA, have already refused to provide coverage for the 897 km long pipeline.
Marsh McLennan said in a statement on Thursday that it is committed to helping companies develop business models with low carbon emissions and manage risks associated with the transition from fossil fuels to renewable energy.
“Marsh McLennan has a long-standing policy of not confirming clients̵7; identities,” the brokerage firm said.