MS&AD Insurance Group Holdings, one of Japan’s largest non-life insurers, announced a series of initiatives aimed at advancing its net-zero strategies, including introducing a new policy to exit underwriting and investment in new coal-fired power plants.
Insurance companies have come under increasing pressure to align their underwriting and investment practices with global initiatives to limit climate change. Earlier this month, United Nations Secretary-General António Guterres urged insurance companies to take part in the global transition to a net-zero economy through the introduction of net zero pledges in their underwriting practices, particularly regarding fossil fuels. Recently, insurance giant Allianz announced sustainability guidelines regarding carbon-based businesses, including a new policy of not serving coal companies that do not have credible transition strategies.
MS&AD’s announcement follows a new goal set by the company last month to reach net-zero CO2 emissions by 2050. The company announced a series of initiatives aimed at reducing across CO2 emissions by society, and to help prepare for climate risk.
In addition to its new coal policy, its initiatives to reduce CO2 emissions by society include supporting the development of clean and renewable energy sources, and the adoption of environmentally friendly vehicles.
Climate change reduction and preparation initiatives include measures to predict and prevent accidents and disasters caused by climate events, and helping companies plan for business continuity in the face of climate risks.
Going forward, MS&AD will create a road map and implement new key performance indicators to promote its plans and advance its climate efforts.