Press release – Reclaim Finance, Insure Our Future, Solutions For Our Climate

March 17th, 2021 – Reclaim Finance and the Insure Our Future network welcome AIA’s divestment from coal, and call on other Asian life insurers to follow AIA’s lead.

In its new 2020 ESG report, AIA commits to do the following:

  • AIA will divest and/or run off their entire directly managed equity and fixed income exposure to coal mining and coal-fired power businesses by the end of 2021 for equity and 2028 for fixed income; and
  • AIA will not permit any new investments within businesses involved directly in either mining coal or generating electricity from coal.

Minyoung Shin, Sustainable Finance Adviser to the Insure Our Future campaign, said: “The pollution, climate destruction and premature death caused by the coal industry are in direct contradiction to the mission of life insurance companies. We welcome AIA’s stance on coal investments and ask it to stand by the commitment to offer full disclosure and accountability of its divestment progress and urge other Asian life insurers to follow suit.”

AIA states that it made its new commitments “in support of sustainability in our markets, and the health and well-being of our customers and communities”. While, in an earlier announcement, AIA limited divestment to companies which derive at least 30% of their revenue from coal, it says that the new approach is applied to all coal companies “regardless of revenue and coal capacity”.

Lucie Pinson, Executive Director of Reclaim Finance, asked AIA to clarify how it defines the coal companies it divests from. “If the approach is as comprehensive as it sounds, we will celebrate it as a bold signal to Asian institutional investors. Coal constitutes a plague for the climate and for public health – it’s high time for Asian financial institutions to catch up with their international peers, ditch coal and drive the transition towards a sustainable future,” Pinson added.

Other major Asian life insurance companies which need to divest from coal include the Life Insurance Company of India, Ping An, Samsung Life, Great Eastern, Thai Life and Cathay, Nanshan and Fubon Life in Taiwan. Several Korean life insurance companies have divested from coal in recent months, and large Japanese life insurers have ended new support for coal projects but have not divested their current coal assets.

Sejong Yun, Solutions For Our Climate, said: “AIA sets a good example for how Korean insurance companies can improve their coal policy. Korean insurers have only committed to “no new coal,” which has little impact as few coal projects are remaining in the pipeline. Korean insurers must begin addressing their existing exposure in equity and fixed income assets and set a clear path for coal divestment.”

Through its “AIA Kick Out Coal” campaign, the Insure Our Future network has called on AIA to divest from coal since November 2020. AIA is globally known as the shirt sponsor of Tottenham Hotspur FC, a football team which has repeatedly committed to supporting climate action.

“As it divests from coal, AIA is aligning its investment portfolio with its public brand and is removing a stain from the Spurs shirts”, Peter Bosshard, the Global Coordinator of the Insure Our Future campaign, commented.

Media Contacts:

  • Camilla Schramek, Senior Communications Campaigner, The Sunrise Project, camilla.schramek@sunriseproject.org.au
  • Angus Satow, press officer at Reclaim Finance, angus@reclaimfinance.org