AIG pulls back from coal

American International Group Inc. said Tuesday it will stop insuring and no longer invest in companies that derive more than 30% of their revenue from coal-fired power, thermal coal mines or oil sands industries, effective immediately.

The New York-based insurer will also no longer invest in or provide insurance cover for the construction of any new coal or oil sands plants or for any new Arctic energy exploration activities.

Underwriting of existing operation insurance risks and investments in those companies that generate more than 30%  of their revenue from coal, thermal coal or oil sands will be phased out by Jan. 1. 2030, or sooner, AIG said.

In a statement, AIG said it was committed to achieving net-zero greenhouse gas emissions across its global underwriting and investment portfolios by 2050, or sooner, and 100% renewable energy for its operations by 2030.

“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 Chairman and CEO Peter Zaffino said in the statement.

AIG said last year it was committed to achieving net-zero emissions for its own operations by 2050.

It joins a growing number of insurers that have announced plans to scale back their exposure to coal, oil sands and shale.

Consumer advocacy group Public Citizen welcomed the move by AIG.

“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 in a statement.

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