We are accelerating our race to net-zero
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Our updated coal policy limits coal exposures in treaties and schedules a total phase-out of thermal coal related re/insurance and investments in OECD countries by 2030, and in the rest of the world by 2040.
The Race to Zero initiative championed by the United Nation's Climate Change Conference - COP26 – calls for a drastic reduction in carbon emissions. As a signatory to the Paris Pledge for Action and the UN Global Compact Business Ambition for 1.5°C, as well as a co-founder of the UN-convened Net-Zero Asset Owner Alliance we're supporting the transition to a low carbon economy and are committed to achieving net-zero emissions on the asset and liability side by 2050 and on the operations side by 2030.
With an update of our thermal coal policy in our Sustainable Business Risk (SBR) Framework we are now accelerating our own race to net-zero in insurance underwriting. In 2023 we will introduce thermal coal exposure thresholds for treaties across our property, engineering, casualty, credit & surety and marine cargo lines of business. The initial thresholds will differ for specific lines of business and geographical areas. They will then be gradually lowered until the final phase-out targets are reached.
With the proposed treaty approach complementing our coal policies for single risk and investments, we set course for a group-wide long-term coal phase-out: For a total phase-out of thermal coal related re/insurance and investments in OECD countries by 2030, and in the rest of the world by 2040.
This journey has started in 2016 when we stopped investing in companies that generate 30% or more of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation. In 2018 we introduced our underwriting coal policy focused on single risks, a commitment to stop supporting businesses with more than 30% exposure to thermal coal.
We also revised our oil and gas policy in 2020 and, beginning in 2021, are gradually withdrawing insurance support for the most carbon-intensive oil and gas production.
In a next step towards net-zero in underwriting, we will assess and steer the carbon footprint of our re/insurance business. In order to do so we will implement a carbon footprinting methodology for our underwriting portfolios that was developed jointly with peers. This forms the basis to further measure and steer our progress towards net-zero emissions in underwriting.