Nippon Life Insurance plans to become the first leading Japanese financial institution to reject investments and loans to new coal-fired power generation projects at home and abroad.
The decision, made by Japan’s largest life insurance company, may have a domino effect across the financial industry, reports The Asahi Shimbun.
Coal-fired power generation is seen as one of the primary causes of global warming. After the Paris Agreement against global warming took effect in 2016, many financial and other institutions in the US and European countries ended their investments and loans to coal-fired power projects. For instance, global reinsurer Swiss Re has stopped providing insurance or reinsurance to businesses with more than 30% exposure to thermal coal.
Earlier, Dai-Ichi Life Insurance announced in May that it would not invest in construction of coal-fired power plants overseas.