AIA Group Ltd. said Tuesday that it has exited coal investments and made new climate commitments amid rising pressure on the insurance industry to ditch fossil fuels.
The Asia-focused insurance giant said that as of October, it had sold coal-related investment holdings of about $10 billion, fully eliminating exposure to coal mining and coal-fired power in its directly-managed equity and fixed-income investments.
Hong Kong-listed AIA, which manages a $286 billion investment portfolio, had vowed in March to cut equity exposure to coal by the end of 2021 and exposure in fixed-income assets by 2028.
AIA joins a growing list of insurers seeking to decarbonize their portfolios as investors and activists pressure companies to stop financing fossil fuels while governments set more stringent emissions targets.
In July, 15 major insurers and reinsurers, including AXA SA, Allianz SE, Aviva PLC and Assicurazioni Generali SpA, committed to bring their underwriting portfolios to net-zero greenhouse gas emissions by 2050.
[Fabiana Negrin Ochoa]