American International Group (AIG) has announced that it has committed to achieve net zero greenhouse gas emissions across its global underwriting and investment portfolios by 2050 or before. The announcement complements AIG’s earlier commitment to achieve net zero emissions within its own operations by 2050 or sooner.
“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,” said Peter Zaffino, chairman and CEO of AIG. “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.”
Specific actions announced by AIG include:
“We are committed to a transparent journey toward sustainability advancement,” said Constance Hunter, executive vice president and global head of strategy and ESG at AIG. “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.”
In the coming months, AIG will release science-based targets as part of its net zero roadmap, including plans for its phase-out of fossil fuels.
The announcement marks a major change for AIG, which had come under increasing pressure from environmental groups as one of the last major US insurers with no restrictions on coal. Environmental advocacy organisation Public Citizen said AIG’s new commitments are “major steps” to protect the environment.
“As one of the last major insurers without restrictions on coal insurance, AIG’s new commitments to reduce underwriting for coal, tar sands oil, and Arctic oil and gas are a major step forward for people and the planet,” said Hannah Saggau, insurance campaigner for Public Citizen. “AIG has vaulted itself from a laggard in the industry to a leader in the US, and we look forward to working with it to meet and improve on these commitments.”