AIG: Net-Zero Greenhouse Gas Emissions in Underwriting, Investments by 2050
American International Group said it is committing to net-zero greenhouse gas emissions within its underwriting and investment portfolios by 2050.
“AIG is focused on the realities of climate change,” said Peter Zaffino, AIG chairman and CEO, in a statement. “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 already set a goal to achieve net-zero greenhouse gas emissions within its operations by at least 2050. The insurer said it has an initiative to use 100% renewable energy for its operations by 2030, or sooner.
Specific actions within AIG’s March 1 announcement include:
- With immediate effect, committed to no longer invest in or provide insurance for construction of any new coal-fired power plants, thermal coal mines or oil sands
- With immediate effect, committed to no longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for those clients that derive 30% or more of their revenues from these industries, or generate more than 30% of their energy production from coal
- Committed to phasing out the underwriting of all existing operation insurance risks and ceasing new investments in those clients that derive 30% or more of their revenues from coal-fired power, thermal coal mines or oil sands, or generate more than 30% of their energy production from coal by Jan. 1, 2030, or sooner
- With immediate effect, committed to not investing in or providing insurance cover for any new Arctic energy exploration activities
Public Citizen, a nonprofit consumer advocacy organization, said AIG is “the first U.S. insurer to rule out insurance for Arctic energy exploration.” The group co-publishes a scorecard of climate leadership of U.S. insurers – the last released in November. AIG joins 37 companies that have committed to end or restrict insurance for new coal projects, according to Public Citizen.
“Leading change in a changing world requires being a company of action – and, as a market leader, AIG is committed to setting the standard with our actions,” Zaffino added. “We believe today’s ESG commitments are an important step forward for AIG, the clients we serve and the global communities where we live and work.”
Additional details and disclosures on AIG’s climate and sustainability strategy can be found in the company’s 2020 ESG Report.
AIG said its efforts are independent of similar efforts of the Net-Zero Insurance Alliance, which includes Lloyd’s, Allianz, AXA, Swiss Re, Munich Re, QBE, Zurich, and others. The group recently faced some concerns regarding violation of antitrust laws.
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