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American International Group said it is committing to net-zero greenhouse gas emissions within its underwriting and investment portfolios by 2050.

“ÌìÃÀÍøÕ¾´«Ã½´«Ã½ is focused on the realities of climate change,” said Peter Zaffino, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ chairman and CEO, in a statement. “The data about climate change is unambiguous and we believe that ÌìÃÀÍøÕ¾´«Ã½´«Ã½ can be a catalyst for positive change as it relates to sustainability advancements and renewable energy expansion.”

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ already set a goal to achieve net-zero greenhouse gas emissions within its operations by at least 2050. The insurer said it has an initiative to use 100% renewable energy for its operations by 2030, or sooner.

Specific actions within ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s March 1 announcement include:

• With immediate effect, committed to no longer invest in or provide insurance for construction of any new coal-fired power plants, thermal coal mines or oil sands
• With immediate effect, committed to no longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for those clients that derive 30% or more of their revenues from these industries, or generate more than 30% of their energy production from coal
• Committed to phasing out the underwriting of all existing operation insurance risks and ceasing new investments in those clients that derive 30% or more of their revenues from coal-fired power, thermal coal mines or oil sands, or generate more than 30% of their energy production from coal by Jan. 1, 2030, or sooner
• With immediate effect, committed to not investing in or providing insurance cover for any new Arctic energy exploration activities

Public Citizen, a nonprofit consumer advocacy organization, said ÌìÃÀÍøÕ¾´«Ã½´«Ã½ is “the first U.S. insurer to rule out insurance for Arctic energy exploration.” The group co-publishes a of U.S. insurers – the last released in November. ÌìÃÀÍøÕ¾´«Ã½´«Ã½ joins 37 companies that have committed to end or restrict insurance for new coal projects, according to Public Citizen.

“Leading change in a changing world requires being a company of action – and, as a market leader, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ is committed to setting the standard with our actions,” Zaffino added. “We believe today’s ESG commitments are an important step forward for ÌìÃÀÍøÕ¾´«Ã½´«Ã½, the clients we serve and the global communities where we live and work.”

Additional details and disclosures on can be found in the company’s 2020 ESG Report.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ said its efforts are independent of similar efforts of the Net-Zero Insurance Alliance, which includes Lloyd’s, Allianz, AXA, Swiss Re, Munich Re, QBE, Zurich, and others. The group recently faced some concerns regarding violation of antitrust laws.

Related:

• Eight Leading Insurers and Reinsurers Launch Net-Zero Climate Alliance
• Net-Zero Insurers’ Climate-Friendly Plans to Exit Coal Impeded by Antitrust Laws
• Swiss Re Announces Net-Zero Climate Targets in Underwriting, Investments
• Lloyd’s Ups Climate Pledge, Vows to Push Members on Net Zero

Topics Trends Underwriting ÌìÃÀÍøÕ¾´«Ã½´«Ã½