AIG Announces Net-Zero Commitment in Underwriting and Investment Portfolios by 2050
A Brief Summary
American International Group (AIG), a global insurance company, recently announced net-zero commitments in its global underwriting and investment portfolios by 2050. The firm aims to reduce coal and oil sands exposure in its underwriting business.
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In 2021, AIG pledged to achieve net-zero emissions in its operations by 2050 and plans to use renewable energy for operations by 2030 and to use emissions reduction targets that are science-based in line with the goals of the Paris Agreement.
“AIG is focused on the realities of climate change,” said Peter Zaffino, AIG’s 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.”
“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,” he added.
Following are the commitments made by AIG:
Decides not to invest in or provide insurance for new coal-fired plants, thermal coal mines or oil sands.
Commits not to invest in or underwrite insurance risks related to operations of coal-fired power plants, thermal coal mines or oil sands for clients deriving 30 per cent or more revenue from these industries or producing over 30 per cent of their energy production from coal.
Drives to phase out underwriting of every existing operation insurance risk and stops investing in clients deriving 30 per cent or more revenue from coal-fired power, thermal coal mines or oil sands or generating over 30 per cent of their energy production from coal by January 1, 2030.
Constance Hunter, Executive Vice President, Global Head of Strategy & ESG, said: “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.”