The US insurer Chubb has said that it will phase out its exposure to coal by ceasing to underwrite or invest in most new coal generation. The company will no longer underwrite any new risks for companies that make 30 per cent or more of their revenues from coal, or any new coal-fired plants. It will phase out its existing insurance cover of companies that do not meet its new standards by 2022, while its asset management arm will no longer invest in any companies that make more than 30 per cent of their revenues from coal.
“Chubb recognizes the reality of climate change and the substantial impact of human activity on our planet,” said Evan G. Greenberg, chairman and CEO of Chubb. “Making the transition to a low-carbon economy involves planning and action by policymakers, investors, businesses and citizens alike. The policy we are implementing today reflects Chubb’s commitment to do our part as a steward of the Earth.”
The company is only the latest insurer to begin to reduce its investments in coal power, which is a major contributor of greenhouse gas emissions. Insurers representing around 20 per cent of the global assets under management in the sector have now begun to divest from the fuel, both because of the climate impact and the risk that the assets will become “stranded” due to changes in policy and in the economics of energy generation.
Sources: IPCC; Swiss Re; IIEFA; Unfriend Coal
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