Climate-conscious insurers scrap coal exit policy to stay on right side of antitrust rules
A coalition of climate-conscious insurance companies have reportedly scrapped plans to stop insuring coal miners, to ensure they are not violating antitrust laws.
The Net Zero Insurance Alliance, whose founding members include Axa, Allianz, and Aviva, dropped plans for a coal exit, after receiving advice from lawyers that the plans to join forces to prevent coal companies from taking out insurance policies might breach anti-competition rules.
Formed in July last year, the Net Zero Insurance Alliance’s 15 members have all vowed to cut their greenhouse gas emissions to net zero by 2050, with a view to limiting global warming.
Climate conscious insurers have increasingly stopped underwriting coal companies in recent years, as they seek to improve their ESG credentials.
Insurers have also faced pressure from campaigners and activist investors for providing insurance policies to coal firms.
However, lawyers from Norton Rose Fulbright warned the coalition that plans to group together in exiting coal might see the insurers sued by coal companies, for breaking antitrust regulations, according to sources speaking to Bloomberg.