May 4, 2018 Read More →

Germany’s Allianz Drops Insurance for Coal Plants, Mines

Deutsche Welle:

Munich, Germany-based Allianz Group announced on Friday that it would refuse insurance coverage of coal-fired power plants and coal mines with immediate effect and would aim to get rid of all coal risks in its business by 2040. In addition, Europe’s biggest insurer said it would stop investing in companies that do not cut their greenhouse gas emissions.

“We want to promote the transition to a climate-friendly economy,” said chief executive Oliver Bäte, adding that the company wanted to get “even more serious on global warming.”

For the time being though, Allianz will continue to insure energy sector companies that produce from “multiple sources,” including renewables, but also coal and other fossil fuels. With those clients Allianz wants to “work closely together” to develop low-carbon alternatives.

The new policy comes after Allianz announced in 2015 a shift in its investment policy, divesting all assets in its €664 billion ($794 billion) portfolio which generate more than 30 percent of their revenues from coal. According to company figures, the insurer has since removed stakes worth €225 million under the program.

Allianz’s European competitors, including Axa and Zurich, have also put climate-saving policies in place, making it harder for coal companies to buy insurance for their operations. But Allianz claims that it’s going one step further by pulling cover from existing coal projects. Its moves were designed to support a “systemic process” to get out of carbon, said CEO Bäte.

More: Allianz Stops Insuring Coal Companies

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