Global insurer and reinsurer AIG has committed to achieving net zero greenhouse gas (GHG) emissions across its underwriting and investment portfolios by 2050, or sooner.
This announcement from AIG follows the carrier’s commitment to achieve net zero GHG emissions by 2050, or sooner, within its own operations.
The company says that it’s committed to leveraging science-based emissions reduction targets, aligning with the latest climate science in order to meet the goals of the Paris Agreement.
Alongside the net zero GHG emissions target across its underwriting and investments by 2050, or sooner, and the reaffirming of 2021’s operational net zero commitment, the firm has also committed to 100% renewable energy for its operations by 2030, or sooner.
Additionally, the firm will no longer invest in or provide insurance for construction on any new coal-fired power plants, thermal coal mines or oil sands, effective immediately. The re/insurer has also committed to no longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for clients that generate over 30% or more of their revenues from these industries, or produce more than 30% of their energy production from coal, with immediate effect.
Other commitments announced today include phasing out the underwriting of all existing operation insurance risks and ending new investments in those clients that derive 30% or more of their revenues from coal-fired power, thermal coal mines or oil sands, or produce greater than 30% of their energy production from coal by January 1st, 2030, or sooner.
Finally, effective immediately, AIG has committed to not invest in or provide insurance protection for any new Arctic energy exploration activities.
Peter Zaffino, Chairman and Chief Executive Officer (CEO), AIG, said: “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. 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.
“AIG is focused on the realities of climate change. 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.”
In the months ahead, AIG says that it will share science-based targets as part of its net zero roadmap, including for its planned phase-out of fossil fuels, and will continue to evolve its ESG framework.
Constance Hunter, Executive Vice President, Global Head of Strategy and ESG, added: “We are committed to a transparent journey toward sustainability advancement.
“We are having constructive discussions with all our stakeholders on this important issue and look forward to reporting progress. We will work together with our clients and distribution partners, in particular, to ensure an ongoing transition to a Net Zero future and provide guidance on feasible solutions designed to help manage climate-related risks.”
This announcement from AIG comes after the publication of the latest IPCC report, which warned of the irreversible impacts of climate change and the challenges of global warming.