Chubb becomes first major US insurer to transition away from coal
Source: Asia Insurance Review | Aug 2019
Chubb announced on 1 July that it has adopted a new policy concerning coal-related underwriting and investment. With the new policy, the company will no longer underwrite the construction and operation of new coal-fired plants or new risks for companies that generate more than 30% of their revenues from coal mining or energy production from coal.
Insurance coverage for existing coal-plant risks that exceed this threshold will be phased out by 2022, and for utilities beginning in 2022. In addition, Chubb will not make new debt or equity investments in companies that generate more than 30% of revenues from thermal coal mining or energy production from coal.
“Chubb recognises the reality of climate change and the substantial impact of human activity on our planet,” said Chubb chairman and CEO Evan Greenberg.
“Making the transition to a low-carbon economy involves planning and action by policymakers, investors, businesses and citizens alike. The policy we are implementing today reflects Chubb’s commitment to do our part as a steward of the Earth.”
The move sees Chubb become the first major US insurer to move away from coal, joining a number of European insurers that have placed restrictions on coal. A