Global insurer Allianz has unveiled a number of new guidelines for coal-based business models in both property and casualty (P&C) insurance and proprietary investments from 2023 onwards.
By 2040, Allianz intends to completely phase out coal-based business models in P&C insurance, which is in line with scientific recommendations for a faster reduction of global greenhouse gas emissions over the next decade.
Expanding on this, Allianz notes that mining companies that plan new coal mines or generate more than 25% revenue from coal mining or more than 10 million tons of coal annually, will no longer receive P&C insurance and financing from January 1st, 2023.
The same also applies to energy firms that build new coal-fired power plants or generate more than 25% energy or five gigawatts annually from coal, alongside service providers that generate more than 25% revenue from coal.
For companies that are exclusively renewable, Allianz says that business activities and investment opportunities will continue to be insured or financed if an overall climate transition path is in place.