Allianz announced that, from July 01 this year, it will cease to insure or invest in infrastructure that derives more than 51% of revenue from the thermal coal industry. This includes coal ports and railways.
From January 01, 2023, Allianz will no longer provide property and casualty (P&C) insurance or make proprietary investments in any company that plans a new coal mine or any existing mining company that generates over 25% of revenue from coal mining or produces more than 10 million tonnes of coal annually.
The insurance giant also confirmed that it will no longer provide P&C insurance or make proprietary investments in energy companies with over 5,000 megawatts of installed coal generation capacity, build new coal-fired power plants, or generate over 25% revenue or more than five gigawatts from coal annually.
Lastly, Allianz stated it will no longer provide P&C insurance to businesses that generate over 25% of revenue through services provided to a thermal coal mine or coal-powered electricity plant, for example, trucks, movable plant, maintenance, repair, or construction services.
However, Allianz clarified that it will continue to support companies with a transition plan away from thermal coal at a pace compatible with the scientific pathways of limiting global warming to 1.5°C – with the plan confirmed by an independent third-party performance assessment.
According to the insurance giant, its criteria to assess companies include a public commitment to phase out coal and a corresponding long-term strategy, plans to close or divest coal assets, and company-level greenhouse gas reduction targets.
“Renewable energy business activities of such companies will continue to be insured or financed if an overall coal phase-out plan is in place,” Allianz said in a statement.
