Swiss Re limits thermal coal coverage

Swiss Re Ltd. will not provide insurance or reinsurance to businesses with more than 30% thermal coal exposure.

The Zurich-based reinsurer has started implementation of its thermal coal policy, adopted as part of Swiss Re’s “strong commitment” to adopt the principles of the Paris climate agreement, which reaffirmed a goal of limiting the global temperature increase below 2 degrees Celsius and committed countries to develop plans to reduce greenhouse gas emissions and regularly report on their progress.

“As a result, Swiss Re supports a progressive and structured shift away from fossil fuels,” the reinsurer said in a statement.

The group-wide thermal coal policy is part of Swiss Re’s Sustainability Risk Framework, which the reinsurer uses for all underwriting and investment activities to minimize sustainability risks. The thermal coal policy applies to both existing and new thermal coal mines and power plants and is implemented across all lines of business and Swiss Re’s global operations.

The 30% threshold applied is in line with the thresholds on the reinsurer’s investment side. Swiss Re stopped investing in companies that generate 30% or more of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation.

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