(Bloomberg) -- American International Group Inc. said it would commit to overhauling its underwriting and investment portfolios so they produce net-zero greenhouse gas emissions by 2050 as insurers move away from fossil fuels.
“AIG is focused on the realities of climate change,” Chief Executive Officer Peter Zaffino said in a statement Tuesday. “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.”
AIG's vow follows a report last year by the nonprofit ShareAction, which ranked the New York-based company among a group of insurers with the worst environmental, social and governance credentials, alongside Nationwide Mutual Insurance Co. and Genworth Financial Inc. More than 20 of the world's largest underwriters previously agreed to transition their insurance and reinsurance underwriting portfolios to net-zero emissions by 2050. Members of the group, which was convened by the United Nations and is known as the Net-Zero Insurance Alliance, include Allianz SE and Axa SA.
Read more: Net-Zero Insurers Uncover New Climate Adversary in Antitrust Law
Firms beyond that organization have taken similar steps. Chubb Ltd. adopted policies in July 2019 meant to reduce its exposure to facilities and firms with significant ties to thermal coal.
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