The implementation of the coal policy is ensure Swiss Re is aligned with the Paris Agreement.
From Monday, Swiss Re will cease providing insurance and reinsurance to businesses with more than 30% exposure to thermal coal across all lines of business.
The announcement follows Swiss Re’s commitment to the “Paris Pledge for Action” in 2015, when it agreed with efforts to limit global warming to 1.5°C – 2°C above pre-industrial levels.
In 2016, Swiss Re stopped investing in, and divested from, companies that got 30% or more of their revenues from coal mining or that use at least 30% coal for power generation.
Patrick Raaflaub, Swiss Re’s Group Chief Risk Officer, said that the development of a coal underwriting policy was a complex task.
Edi Schmid, Swiss Re’s Group Chief Underwriting Officer, said the implementation of the coal policy was a step to ensure its business aligned with the Paris Agreement.
“We are working with our clients to find the best solutions that enable them to adapt to a low-carbon economy,” he said.