American International Group (AIG), a global insurance company, has committed to net-zero greenhouse gas emissions and a retreat from coal industries.
As recently announced, New York-based AIG is taking a step back from insuring and investing in companies that derive more than 30% of their revenue from coal. AIG joins Lloyd's of London, another insurance leader, which made a similar decision in late 2020.
"Leading change in a changing world requires being a company of action – and, as a market leader, AIG is committed to setting the standard with our actions. We believe today's environmental, social and governance (ESG) commitments are an important step forward for AIG, the clients we serve and the global communities where we live and work," AIG Chairman and CEO Peter Zaffino said. "AIG is focused on the realities of climate change. The data about climate change is unambiguous, and we believe that AIG can be a catalyst for positive change as it relates to sustainability advancements and renewable energy expansion."
AIG said that it was committed to 100% renewable energy for its operations by 2030 and was seeking to hit net-zero greenhouse gas emissions across its global underwriting and investment portfolios by 2050.
"As one of the last major insurers without restrictions on coal insurance, AIG's new commitments to reduce underwriting for coal, tar sands oil and Arctic oil and gas are a major step forward for people and the planet," Hannah Saggau, insurance campaigner with Public Citizen, said to Business Insurance.
Effective immediately, AIG will no longer invest in or insure companies that derive more than 30% of their revenue from coal-fired power, thermal coal mines or oil sands industries. Existing investments or coverage will be phased out by 2030 or sooner, a news release said. The group also will no longer invest in or provide insurance coverage for future coal plants, oil sands plants or arctic energy exploration.
Lloyd's of London made similar commitments in late 2020, according to Business Insurance. The company said it would end new investment in thermal coal-fired power plants, thermal coal mines, oil sands and new Arctic energy exploration activities beginning Jan. 1 of 2022 and phase out investments in companies generating more than 30% of revenue from coal by 2025.