Fairfax Financial is already taking massive climate-related hits in 2025, expecting up to USD $750 million in net losses from the Los Angeles wildfires, on top of USD $1.1 billion in catastrophe losses in 2024.
Yet despite the growing financial risks, Fairfax has failed to disclose even the most basic accounting of its climate exposure–leaving investors in the dark.
The devastation caused by these extreme weather events – financial and otherwise – are made worse by climate change, and will continue to escalate without human intervention. Amongst these interventions, a priority is to reduce facilitation and investments in the primary sources of greenhouse gas emissions.
Fairfax is clinging to an outdated business model in an industry that must adapt. Trying to maintain its business without addressing climate risks is like Blockbuster ignoring streaming in the 2000s—it doesn’t end well.
Many of its global and Canadian peers report their financed emissions, set net-zero targets, and are beginning to align with the energy transition. But Fairfax remains an outlier as the fifth largest fossil fuel insurer in the world, and with over $1.5 billion in fossil fuel investments.
That’s why we’ve filed a shareholder resolution urging Fairfax to disclose its financed emissions, a well-accepted first step in climate risk management, already practiced by global and Canadian peers. This would be the bare minimum to begin to catch up to their competition.
Investors for Paris Compliance has attempted to engage with Fairfax, but the company has not responded—making this resolution a necessary step to daylight the risk to shareholders.
Our full analysis of Fairfax’s climate risks is available here, our resolution is here, and the company’s proxy statement here.
