A group of the largest insurance companies and pension funds with a $5 trillion turnover calls on companies to move away from thermal coal. Economichna Pravda reports this with reference to Reuters.
In particular, companies are urging not to finance, insure, build, manufacture, or plan new coal-fired power plants.
The Asset Owners Alliance Net-Zero, which includes German insurer Allianz, recently pledged to set tighter carbon caps for companies in its portfolio.
To meet the terms of the Paris Agreement on Climate Change, which aims to limit global warming, developed countries must phase out most of their thermal coal by 2030 and completely abandon it by 2040.
“If a long-term carbon footprint cannot be achieved, group members will need to split and ultimately sell,” said Gunther Tallinger, Board Member for Investment, Environment, Social and Governance, Allianz.
In addition to the above measures, all new thermal coal projects in the pre-construction stage, including coal mines and related infrastructure, should also be canceled immediately.
Earlier, it was reported that one of the cities in Finland would completely abandon coal in a year.