Leading insurers still underwrite US coal despite net zero pledges
Source: Asia Insurance Review | Nov 2023
Leading European insurers are underwriting nearly a third of the US coal production despite their net zero commitments according to a new report released by Insure Our Future.
Lloyd’s of London, Zurich and Swiss Re are among the top 10 insurers of the 25 biggest US mines, which produced more than 60% of the country’s coal in 2022. They underwrite 13 mines producing 30.7% of national output.
Coal is the largest contributor of carbon dioxide emissions, and the US is the fourth largest producer of coal worldwide, mining 595m tons in 2022 alone.
According to the new release, due to global pressure and targeted campaigning from Insure Our Future and other networks, 45 major insurers have adopted policies restricting coal underwriting in recent years. However, the report finds that leading insurers are exploiting loopholes or violating their own policies to continue underwriting coal mines.
Insure Our Future campaign senior strategist Mary Sweeters said “The insurers are publicly committing to net zero emissions and restrictive fossil fuel policies, yet behind closed doors they continue to underwrite dirty fossil fuel projects, violating their own policies or exploiting loopholes. They are fuelling the climate crisis and profiting from it, while greenwashing their business with empty promises.” A