Swiss Re has stopped providing insurance and reinsurance to coal-aligned businesses as part of a broader initiative to support the Paris climate action plan aimed at reducing carbon emissions.

The thermal policy, first announced last year in June, will apply to companies with at least a 30% exposure to coal across all lines of business.

“The implementation of the coal policy is a major step forward in ensuring that our business activities are aligned with the Paris Agreement and related national efforts,” Group Chief Underwriting Officer Edi Schmid said.

“We are working with our clients to find the best solutions that enable them to adapt to a low-carbon economy.“

The 30% threshold applied is in line with the position Swiss Re has adopted in its investment philosophy since 2016.

The reinsurer has stopped investing in companies that generate 30% or more of their revenues from thermal coal mining or use at least 30% thermal coal for power generation. It has also  divested its holdings from companies that do not meet the benchmarks.