German-based Allianz, Germany’s biggest insurer, announced it will stop insuring coal-fired power plants and coal mines, effective immediately.
Additionally, the company plans to phase out its investments in coal-based businesses by 2040, with specific methods and targets to be set by the end of this year, though the threshold value in the energy sector for the maximum share of coal used by the emitters that Allianz finances will be successively lowered in five percent steps from currently thirty percent to zero by 2040.
Both initiatives were announced by a company as a way to set long-term climate goals linked to the Paris Climate Agreement.
“Climate change generates enormous economic and social risks. It is already harming millions of people today,” said Oliver Bäte, CEO of Allianz. “As a leading insurer and investor, we want to promote the transition to a climate-friendly economy.”
The move comes less than a month after HSBC, the largest bank in Europe, announced it would stop financing coal projects almost entirely across the world.