Global insurance company American International Group (AIG) announced today a series of new sustainability commitments, including goals to achieve net zero greenhouse gas (GHG) emissions across its global underwriting and investment portfolios by 2050, and plans to significantly reduce exposure in its underwriting business to coal and oil sands.
Peter Zaffino, Chairman & CEO, AIG, said:
“Leading change in a changing world requires being a company of action – and, as a market leader, AIG is committed to setting the standard with our actions. 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. AIG is focused on the realities of climate change. 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.”
In addition to its new net zero investment goal, AIG unveiled commitments today to achieve 100% renewable energy for its operations by 2030, and to use science-based emissions reduction targets aligned with the goals of the Paris Agreement. On the investment and underwriting front, AIG has committed to no longer invest in or provide insurance for construction of any new coal-fired power plants, thermal coal mines or oil sands, no longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for those clients that derive 30% or more of their revenues from these industries, or generate more than 30% of their energy production from coal, and to phase out underwriting and ending new investments in clients that derive 30% or more of revenue from coal-fired power, thermal coal mines or oil sands or generate more than 30 percent of their energy production from coal by 2030. AIG will also not invest or provide insurance coverage for new Arctic exploration activities.
The announcement follows the commitment made by AIG last year to achieve net zero GHG emissions in its own operations, and the appointment in December of Constance Hunter as Executive Vice President, Global Head of Strategy & ESG, responsible for supporting businesses as they navigate challenges, particularly related to climate change, and for delivering on the firm’s own ESG commitments.
“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.”