'Growing number of global insurance firms divesting from fossil fuels':
True that, the last line. It is the be all and end all on any subject.A growing number of insurance companies increasingly affected by the consequences of climate change are selling holdings in coal companies and refusing to underwrite their operations.
About £15bn has been divested in the past two years, according to a new report that rates the world’s leading insurers’ efforts to distance themselves from the fossil fuel industry that is most responsible for carbon emissions.
Fifteen companies – almost all based in Europe – have fully or partially cut financial ties, says the study by the Unfriend Coal campaign, which represents a coalition of a dozen environmental groups including Greenpeace, 350.org and the Sierra Club.
Zurich, the world’s seventh biggest insurer, is the latest to shift away from coal, announcing this week that it is pulling out of coal to contribute to broader efforts to achieve the Paris accord goal of keeping global warming below 2C.
Allianz, Aviva and Axa have previously made similar moves. Lloyd’s and Swiss Re are expected to follow in the coming months.
The campaign has a long way to go. The early movers represent only 13% of all global insurance assets. None of the major US insurers such as Berkshire Hathaway, AIG and Liberty Mutual have taken action, according to the study.
Despite this, the authors say the shift of assets and coverage since 2015 is gaining momentum.
“Coal needs to become uninsurable,” said Peter Bosshard, the coordinator of Unfriend Coal. “If insurers cease to cover the numerous natural, technical, commercial and political risks of coal projects, then new coalmines and power plants cannot be built and existing operations will have to be shut down.”
Such financial pressure is crucial if global warming is to be kept in check.