Suncorp will consider a climate change resolution from shareholders demanding the insurer take action to cut its ties with fossil fuels.

The group already has a low exposure to fossil fuel-related business and is not investing in or underwriting new coal-related businesses.

The board will make its recommendations next month in a circular to shareholders before the AGM in September, Suncorp says in a market update to the Australian Securities Exchange.

More than 100 shareholders with about 0.01% of Suncorp stock submitted the resolution last week through environmental campaign group Market Forces.

They want the group to disclose short and long-term targets to reduce investment and underwriting exposure to fossil fuels as well as the plans for achieving the goals.

The reduction targets must be in line with the Paris Agreement to limit global warming to 1.5 degrees. Additionally the information should be published regularly starting with the 2019/20 annual report.

A Suncorp spokesman told insuranceNEWS.com.au the insurer already has a policy of not investing in or underwriting new coal-related businesses.

Its exposure to the fossil fuels industry is “not material” and accounts for less than 0.5% of its insurance business and investment portfolio.

“Suncorp does not directly invest in, finance or underwrite new thermal coal mining extraction projects, or new thermal coal electricity generation, and we will phase out these exposures by 2025,” the spokesman told insuranceNEWS.com.au.

“We will seek to increase exposure to businesses that have a positive environmental impact, including renewable energy generation and technology.

“We review our approach annually and continue to engage openly and constructively with our stakeholders as we work together to build the resilience of our business and the community.”

Market Forces campaigner Pablo Brait says Suncorp’s “progress on thermal coal is exciting” but believes more could be done.

“The impacts of climate change pose severe risks to humanity and those risks are already showing up on the balance sheets of insurance companies,” he said. “Shareholders and investors need assurance that Suncorp is doing everything possible to minimise the risks of climate change.”.