French re/insurer SCOR has announced further climate targets to reduce the carbon intensity of its investments and accelerate its move towards net-zero emissions.
By 2025, SCOR now aims to have reduced the carbon intensity of its corporate bonds and listed equities portfolio by 27%.
It’s hoped that this new target will support SCOR’s public pledge to become net-zero on investments by 2050, which was made after the reinsurer signed up to the Net-Zero Asset Owner Alliance in May of 2020.
SCOR explained that the new interim target will be achieved by active engagement with companies in high-emitting sectors, and says its progress will be regularly disclosed.
“Over the past years, SCOR has demonstrated its strong commitment to contribute to the fight against climate change and to actively integrate environmental, social and governance dimensions in its investment decisions,” said François de Varenne, Chief Executive Officer of SCOR Global Investments.
“As a responsible investor, SGI achieved key milestones in 2020, by joining the Net-Zero Asset Owner Alliance and by signing the Finance for Biodiversity Pledge. Through these new interim Net-Zero targets, SGI is going a step further in its commitment to financing the sustainable development of economy and society.”
Convened by the United Nations (UN), the Net-Zero Asset Owner Alliance is an international group of institutional investors that have committed to decarbonise their portfolios to help avoid a global temperature increase above the 1.5°C Paris target.
Other insurance and reinsurance companies that form part of the Alliance include Munich Re, Swiss Re, Allianz, Zurich, and Generali.
Already, SCOR is committed to divesting from companies generating more than 10% of their total revenue from thermal coal, and from utility companies for which coal represents more than 10% of their power production.
In the longer term, the company aims to divest totally from companies generating part of their revenue from thermal coal, by 2030 in OECD and EU countries and by 2040 in the rest of the world.
Moreover, the reinsurer will not invest in companies developing new coal-related projects, such as mines, plants, power stations or infrastructure.