AIG has, with immediate effect, committed to no longer invest in or provide insurance for construction of any new coal-fired power plants, thermal coal mines or oil sands.

The US insurer will also, with immediate effect, stop investing in or underwriting new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands.

The action applies to clients who derive 30% or more of their revenues from these industries, or generate more than 30% of their energy production from coal, the business said in a statement last week.

AIG has pledged as well to phase out the underwriting of all existing operation insurance risks and cease new investments in those clients that earn 30% or more of their revenues from coal-fired power, thermal coal mines or oil sands, or generate more than 30% of their energy production from coal, by January 1 2030 or earlier.

AIG says the actions are part of its commitment to achieve net zero greenhouse gas emissions across its global underwriting and investment portfolios by 2050 or sooner.

“Leading change in a changing world requires being a company of action – and, as a market leader, AIG is committed to setting the standard with our actions,” Chairman and CEO Peter Zaffino said.

He says the actions “are an important step forward for AIG, the clients we serve and the global communities where we live and work”.

“AIG is focused on the realities of climate change,” Mr Zaffino said. “The data about climate change is unambiguous and we believe that AIG can be a catalyst for positive change as it relates to sustainability advancements and renewable energy expansion.”

The insurer says in the coming months it will share science-based targets as part of its net zero roadmap, including for its planned phase-out of fossil fuels.

Here are the specific climate actions AIG announced last week:

• Committed to reach net zero greenhouse gas emissions across its underwriting and investments portfolios by 2050, or sooner;
• Reaffirmed last year’s operational net zero commitment by 2050, or sooner;
• Committed to 100% renewable energy for AIG’s operations by 2030, or sooner;
• Committed to using science-based emissions reduction targets, aligning with the latest climate science to meet the goals of the Paris Agreement;
• With immediate effect, committed to no longer invest in or provide insurance for construction of any new coal-fired power plants, thermal coal mines or oil sands;
• With immediate effect, committed to no longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for those clients that derive 30% or more of their revenues from these industries, or generate more than 30% of their energy production from coal;
• Committed to phasing out the underwriting of all existing operation insurance risks and ceasing new investments in those clients that derive 30% or more of their revenues from coal-fired power, thermal coal mines or oil sands, or generate more than 30% of their energy production from coal by January 1 2030, or sooner; and
• With immediate effect, committed to not investing in or providing insurance cover for any new Arctic energy exploration activities.