SCOR promises to be carbon neutral by 2050, joins UN-backed Net-Zero alliance

France-based global reinsurer SCOR has joined the Net-Zero Asset Owner Alliance, an international initiative bringing together investors who are committed to transitioning their investment portfolios to carbon neutrality by 2050.

The move is in line with the group’s pledge in its “Quantum Leap” strategic plan to make its investment portfolio carbon neutral by 2050.

Launched in September 2019 by the UN, the alliance focuses on implementing the Paris Agreement, the main goal of which is to limit the rise in global average in temperature to 1.5°C.

SCOR stated that it is accelerating its withdrawal from coal assets, by lowering the exclusion threshold for companies generating revenue from thermal coal.

The company said that it has already disposed of securities from companies generating more than 30 percent of their revenue from coal, and is now committed to divesting from companies generating more than 10 percent of their total revenue from thermal coal, and from utility companies for which coal represents more than 10 percent of their power production. This applies to all asset classes on SCOR’s investment portfolio.

In the longer term, SCOR aims to divest totally from companies generating part of their revenue from thermal coal, by 2030 in OECD and EU countries and by 2040 in the rest of the world.

Moreover, the company undertakes not to invest in companies developing new coal-related projects, such as mines, plants, power stations or infrastructure.

The reinsurer said by signing up for the initiative, it has entered a new phase in its implementation of climate and energy transition measures.

Denis Kessler, chairman and chief executive officer of SCOR, said: “SCOR is pleased to join the Net-Zero Asset Owner Alliance to promote the transition to a post-coal economy. As a Tier 1 global reinsurer, SCOR has a longstanding commitment to fighting climate change over the long term. Protecting people and property from natural catastrophes and encouraging sustainable development, particularly in a context of intensified climate risk and increased extreme events, are integral parts of the Group’s mission.

"By joining this initiative and implementing new measures to support the energy transition, SCOR is further strengthening its sustainable approach to investment, as set out in its “Quantum Leap” strategic plan.”