Property and casualty insurer The Hartford will no longer insure or invest in companies that generate more than 25% of their revenues from thermal coal mining or more than 25% of their energy production from coal.
In addition, the company will also stop insuring and investing in companies that generate more than 25 percent of their revenues directly from the extraction of oil from tar sands.
The company says exceptions will exist for business lines that cover employees, such as disability, life and other voluntary products offered by our Group Benefits division – where it is providing protection to people.
“The world needs affordable, accessible energy to support global economic progress and, at the same time, action is needed to mitigate the impact such activity has on our climate,” said The Hartford’s Chairman and Chief Executive Officer, Christopher Swift.
“Extreme weather affects people’s lives and businesses – and the risks are getting worse. As an insurer and asset manager we recognize the growing cost of this crisis, and we’re determined to use our resources and influence to address the challenge. That’s why we have taken a position on coal and tar sands.”
The policy parameters include no new underwriting of or investments in the construction and operation of new coal-fired plants; phasing out existing underwriting relationships and divesting publicly traded investments which exceed the threshold by 2023.
