Boston, August 12, 2024 – In response to a shareholder proposal from United Church Funds, represented by Green Century and Presbyterian Church, (U.S.A.) as well as dialogue with other stakeholders, the American International Group (AIG) will publish a roadmap explaining how it will fulfill its climate goals and address climate risk.
While AIG is developing climate transition plans in response to regulatory requirements in international jurisdictions, the climate transition plan it intends to deliver to investors will cover its U.S. business as well. It committed to following the Transition Plan Taskforce Disclosure Framework, one of the most comprehensive and detailed sets of climate transition plan guidance available.
In 2022, the company established robust goals to significantly reduce the greenhouse gas emissions associated with its insurance and investment portfolios by 2050 or sooner. Further, it committed to 100% renewable energy for its operations by 2030, or sooner, and declared it would not invest in or provide insurance cover for any new Arctic energy exploration activities.
“The insurance industry is pivotal to the transition to a low-carbon economy,” said Green Century President Leslie Samuelrich. “We’re pleased AIG has not only set rigorous targets to reduce greenhouse gas emissions associated with its insurance products and investment practices, but now will be delivering a climate transition plan to provide investors insight into its strategies and next steps.”
Along with its 2050 goal, AIG also announced that it will no longer invest or insure the construction or operation of new coal-fired power plants, thermal coal mines or oil sands. The company pledged to phase out some existing insurance policies with coal-fired power plants, coal mines and oil sands by Jan. 1, 2030.
AIG takes a big step toward transparency
AIG’s goals and plans come at a time when climate conditions are driving stronger storms, wildfires, hurricanes, and droughts, which is making insurance expensive for homeowners in climate-vulnerable areas. Experts anticipate climate change will leave insurers overexposed to climate risk.
“This is a big step for AIG, and we look forward to continuing to work with the company as it outlines plans for meeting its rigorous and necessary climate targets,” said Katie Carter, director of Faith-Based Investing and Corporate Engagement for the Presbyterian Church, (U.S.A.).
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