AIG reveals new net zero targets focused on ‘realities of climate change’

Global insurance conglomerate  American International Group (AIG) has ruled out investment in new coal-fired power plants, thermal coal mines or oil sands, and new Arctic energy exploration as it commits to Net Zero Greenhouse Gas (GHG) emissions by 2050.

The insurer has pledged to use science-based emissions reduction targets across its underwriting and investment portfolios, aligning with the latest climate science to meet the goals of the Paris Agreement.

Specific actions announced by AIG include no longer underwriting or investing in any new coal-fired power plants, thermal coal mines or oil sands, while phasing out the underwriting of all existing operation insurance risks and ceasing new investments in these sectors.

Additionally, AIG will no longer provide insurance cover or invest in any new Arctic energy exploration activities.

The carrier has committed to 100 percent renewable energy by 2030.

“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. 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,” said Peter Zaffino (pictured), chairman and CEO of AIG.

“ 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.”

The company's global head of strategy and ESG, said: “We are committed to a transparent journey toward sustainability advancement. 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.”

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