CAN, Author at Coal Action Network

In March, the Intergovernmental Panel on Climate Change (IPCC), the body of the world's leading climate scientists, released the last instalment of their sixth assessment report (AR6). This delivered a "final warning" – the comprehensive review of the climate crisis took hundreds of scientists eight years to compile and runs to thousands of pages, but boiled down to one message: act now, or it will be too late.

Yet, according to the report, we still have hope of staying within 1.5°C. Hoesung Lee, the chair of the IPCC, said: “This synthesis report underscores the urgency of taking more ambitious action and shows that, if we act now, we can still secure a livable sustainable future for all.”

Together, as part of this global movement, we need to keep the pressure on the governments, financiers, insurers, and fossil fuel companies that are pushing us deeper into climate crisis, putting profits above people and our planet. We've compiled five actions you can take with us, based on the report's findings and recommendations.

"No New Coal"

According to the UN Secretary General, António Guterres, “no new coal and the phasing out of coal by 2030 in OECD countries” is step #1 to accelerate climate action.

Yet Wales is about to decide whether to expand the UK's biggest opencast coal mine, by four years and 2 million tonnes of coal. Sign our petition to call on the Welsh Government to stop this from going ahead: https://you.38degrees.org.uk/petitions/don-t-expand-uk-s-biggest-opencast-coal-mine.

"Partial pledges won't cut it"

The reports states there will be dire consequences if countries scrap carbon pledges. That’s exactly what the Whitehaven coal mine would do, which was approved by the UK government last December.

It's still possible to stop the mine, and our friends at South Lakes Action on Climate Change want to do – but we need your help. Donate to help them mount a Judicial Review against Whitehaven coal mine in Cumbria: https://www.crowdjustice.com/case/challenge-the-cumbria-coal-mine/.

"End all international public and private funding of coal"

Guterres points to the backers of fossil fuel companies. Adani’s Carmichael coal mine can only be financed because Lloyd's of London syndicate Probitas 1492 insures it. No insurance = no coal mine.

Sign up to tell Probitas staff to drop this project: https://actionnetwork.org/forms/take-regular-action-to-stop-adani.

"Cease all licensing or funding for new oil & gas"

Insurers listen up: oil&gas shouldn’t be funded or licensed…so don’t insure it! Set to be the world’s biggest heated oil pipeline, EACOP must be stopped.

Take regular action emailing insurance staff to warn them not to insure EACOP: https://actionnetwork.org/forms/take-regular-action-to-stopeacop-2/.

"It will take a quantum leap in climate action"

As we said, the report isn't without hope: “as it shows, the 1.5-degree limit is achievable. But it will take a quantum leap in climate action.”

If you want to get inspired, we recommend watching FINITE: The Climate of Change, an award-winning feature documentary about people standing up against the fossil fuel industry. Check out their Twitter for details of any upcoming screenings: https://twitter.com/finitedoc. Or you can watch FINITE online now via WOWFilm. Only available for 200 views, over half have gone already, so make sure not to miss it! The price is “pay what you feel. If you can, please donate so they can keep making films.

Yesterday, 23rd February activists from the StopEACOP Coalition held an ‘oil spill’ demonstration outside the offices of two insurance companies, Talbot & Cincinnati Global Underwriting to demand the companies rule out the controversial East Africa Crude Oil Pipeline (EACOP).

Activists staged a moveable ‘oil spill,’ with hazard signs that highlighted the risks of the controversial project, outside the offices of Talbot, before taking the scene with them to Cincinnati Global Underwriting to target staff at both Lloyd’s of London insurers. Activists brought banners naming the individual insurers, demanding they distance themselves from fossil fuel projects like EACOP, and talked to staff to urge them to raise the matter internally.

Meanwhile, phone calls poured into the offices of both companies with supporters of the demonstration urging the company to take a position against EACOP on environmental and human rights grounds.

On the reason for targeting the firms Talbot and Cincinnati, Elara Shurety of Coal Action Network explained:

"While Cincinnati and AIG (parent company of Talbot) have ruled out other climate-wrecking projects such as Adani and the Trans Mountain Pipeline, they have stayed silent when asked about EACOP, and their oil and gas policies are relaxed enough to permit them to insure this climate disaster. We know that EACOP is seeking insurance at Lloyd’s where these companies manage syndicates."

Despite the growing controversy around the project, including human rights violations, the French oil company Total Energies and the Chinese state company CNOOC are moving ahead with the oilfields and pipeline projects.

Baraka Lenga, of the Tanzanian chapter of the international multi-faith network GreenFaith, said: "We urge Talbot and Cincinnati to commit publicly to ruling out the East African Crude Oil Pipeline. Our land, water, and natural resources are integral to our livelihoods and culture, and this pipeline poses a significant threat to our well-being and future with unacceptable risks and impacts. We implore the insurance companies to stand with us by prioritising the health and safety of our communities, as well as the preservation of our environment. Let us work together towards sustainable development that benefits everyone, instead of supporting a project that will only bring harm to our beloved home."

Maxwell Atuhura, of the Africa Institute for Energy Governance (AFIEGO) in Buliisa, Uganda, said: "Financial institutions and insurers that choose to lend their financial muscle to harmful fossil fuel projects, must recognise their role in fuelling the climate crisis that is devastating communities. It's time these institutions make a conscious effort to transition towards more sustainable and ethical investments. Those which have ruled out EACOP have chosen to prioritise the lives of communities and the future of our planet and generations to come."

The protest comes on day four of a coordinated 'global week or action on EACOP' by the StopEACOP coalition of civil society groups including Coal Action Network, Money Rebellion, Let’s Stop EACOP UK, BankTrack and Tipping Point UK. Throughout the week Lloyd’s insurers have been targeted through street demonstrations, online activities and phone calls. Since Monday an unprecedented 4 million emails have been sent to Lloyd's of London insurers by thousands of global supporters of the campaign, in a ‘communications blockade’ urging them to join the 22 other insurers that have already ruled the project out.

AIG, parent company of Talbot, will also be targeted by the StopEACOP global week of action in New York in a demonstration on Friday 24th February in NY on Friday.

Four insurers ruled out EACOP in the past two weeks due to pressure from activists and engagement with campaigners, with Canopius the latest to distance itself from the mega-pipeline

A statement from Canopius followed the hand delivery of a letter from Money Rebellion, urging them to rule out the controversial project. Lee Jones, Head of Marketing and Communications at Canopius said: “Canopius can confirm that we have no involvement, or plans to be involved with the insurance of the East African Crude Oil Pipeline.”

The East Africa Crude Oil pipeline, or EACOP is a 1,443 kilometre pipeline planned for Uganda and Tanzania. It threatens to displace thousands of families and farmers from their land, severely degrade critical water resources and wetlands in both Uganda and Tanzania, and rip through numerous sensitive biodiversity hotspots. The oil transported via the pipeline would generate 34 million tons of carbon emissions each year. Local resistance against the project has been ongoing since 2017 as an international Stop EACOP campaign has led advocacy since 2020.

Activists pointed to insurers who have been contacted but are yet to rule out the project, including Brit, Chaucer and Tokio Marine Kiln, Chubb, Liberty Mutual and AIG, as the next targets. All have syndicates within the Lloyd’s of London marketplace which has been criticised over its lack of robust exclusions on fossil fuels.

Further companies with syndicates in the Lloyds marketplace yet to respond to the request for information about their involvement in EACOP include Cincinnati Global and Lancashire Syndicates.

This week, the Extinction Rebellion group, Money Rebellion, will hand-deliver letters to Brit, Chaucer, Tokio Marine Kiln and Chubb, encouraging them to rule out the controversial scheme.

Hundreds of activists from around the world have joined an online platform supporting them to contact insurers and make a case for staying away from EACOP by exposing the numerous climate, environmental, social risks and human rights violations associated with the project. Coal Action Network estimates that by Tuesday morning around two thousand emails will have been received by staff at Brit and Chaucer.

Last week the East African regional insurer Britam ruled out the project in response to a complaint that it did not meet the IFC (International Finance Consortium) Performance Standards. Arch and AEGIS, both Lloyds of London syndicates also ruled out involvement.

Samuel Okulony, of Ugandan organisation and #StopEACOP partner Environment Governance Institute (EGI), said, "Supporting projects that are marred by human rights violations, environmental degradation, and the destruction of our country's natural heritage is unacceptable. While some reinsurers and banks have abandoned the EACOP project due to its disastrous nature, we continue to urge those who are still considering it to refrain from being complicit and to withdraw financial support."

Isobel Tarr of Coal Action Network added, “Because the project can’t be fully insured in-country, global insurance broker Marsh is seeking insurance for EACOP on the international market. Lloyds of London is top of the list, and all the companies the #StopEACOP campaign is targeting syndicates there. If Lloyd’s brought in robust exclusions on fossil fuels then their syndicates wouldn’t be subject to such pressure from campaigners on projects like EACOP.”

EACOP has been condemned by the European parliament for its associated human rights abuses in Uganda and Tanzania with arrests and indefinite detention of peaceful protestors taking place in October, forcing other insurers to distance themselves. The pipeline and associated Tilenga oil field are expected to displace almost 118,000 people in Uganda and Tanzania. And nearly a third of the pipeline would be built in the Lake Victoria Basin, on which more than 40 million people depend for their water and food production and where an oil spill would be disastrous.

Lloyd’s of London Chairman, Bruce Carnegie-Brown, has allegedly offered an ‘olive branch to eco-activists’ – as reported in The Insurer this week. Having listened to his comments, we’re not so sure – and we certainly won’t be placated until the insurance industry’s actions start speaking louder than their words.

Industry publication The Insurer has released two clips from a recent panel discussion on climate issues with Carnegie-Brown and Canada’s former Conservative prime minister Stephen Harper, chaired by The Insurer’s managing editor, Peter Hastie.

An olive branch to unreasonable people

The Insurer’s basis for claiming Carnegie-Brown offered climate activists an ‘olive branch', is based around their assertion that he states ‘eco activists were “clearly” needed’ to bring about change. The clip from the discussion, however, presents a different story. Instead, Bruce describes ‘eco-activists’ as ‘unreasonable people.’ What Carnegie-Brown actually says is ‘clearly’ needed is ‘some change in our perceptions about the impact of the way we behave in our everyday lives.’ This speaks to a desire of top polluters and their enablers, the key drivers of climate change, to push the responsibility onto individual behaviour – and away from themselves. It also implies our everyday lives are equal in their contributions to climate change. In reality, the richest 1% of the population are responsible for more than 15% of global emissions. As highlighted by the United Nations’ IPCC, we need change on a much larger scale in order to avoid the worst effects of climate change. This includes, regardless of existing construction, no new coal plants to be built or become active.

Frontline communities are not your rhetorical counterpoints

One of Carnegie-Brown’s main criticisms of the growing global movement putting pressure on insurers worldwide was the ‘tendency to be single issue based.’ Instead, he argues that climate change cannot get addressed on a case-by-case basis. We would be the first to agree with that! We need market-wide policy to effectively mitigate climate change. This is something we have been continually pressuring Lloyd’s to take – our first demand of them is an immediate phase out of the insurance of all coal and fossil fuels. Lloyd’s targets are woefully inadequate, and there has been no effort to report on whether members are fulfilling their own commitments, though we know from other sources that they are not. In this sense, the same case-by-case basis ‘strategy’ that Carnegie-Brown is so critical of is driven in part by Lloyd’s own inaction and lack of transparency.

It is frontline communities who bear the brutal impacts of these projects. Our actions stand in solidarity with those most affected by extraction. It’s misleading to caution, as Harper does during the panel, that ‘satisfying the activists in London when you decommission a power plant, but on the ground in some emerging economy it may be terrible.’ This sets up a false dichotomy – implying those ‘on the ground’ are not actively campaigning against extraction, when in fact all the insurance campaigns we work on are led by communities on the ground who are demanding better alternatives to fossil fuels. There are the disastrous risks to people on the ground from the projects that continue to be insured on the London market, such as forced displacement, water contamination, catastrophes such as failed tailings dams, extensive habitat and biodiversity loss.

The concern voiced by the panel on behalf of ‘people on the ground’ is therefore misdirected. It would be better directed by placing exclusions on the Lloyds marketplace which would see these disastrous projects turned away at the door. We highlight that we are continuing to demand the democratisation of the insurance industry to force a just transition for all.

Lloyd's are looking for data? It's already there – and it's telling us to act

Carnegie-Brown also speaks of the need for ‘common data’ to support sector wide action on climate change. Yet the data is already there. And it says this: there can be no new fossil fuel projects starting after 2021 if we are to stay within 1.5 degrees of warming. Instead, Carnegie-Brown suggests a reduction of carbon intensive activity that ‘reduces every year to get to net zero by 2050.’ This flies in the face of existing data – net-zero by 2050 is not enough. At a bare minimum, we need the insurance sector to be meeting the United Nations’ Race to Zero criteria. Given the availability of extensive scientific evidence, the panel’s calls for ‘data’ in order to act seem really to be calls for data that support their current position, rather than challenge them to change.

We need more than a PR story

So, while The Insurer reports on this positively, characterising it as recognising the need for climate activists to bring about change, at most this amounts to greenwashing. In a telling comment, Stephen Harper advises the insurance industry in the discussion to ensure that they ‘have a story’ (read: PR) about moving in a positive direction – whilst ensuring that this story doesn’t harm their ‘bottom line.’ As ever, profits come first.

A ‘story’ is not enough. We need those who currently hold the power to act to keep fossil fuels in the ground, and support just climate solutions. Until then, it seems we will have to carry on being ‘unreasonable.’

Last Thursday, 18th May, Coal Action Network protested outside of Lloyd’s of London, for their role in insuring the expansion of the Trans Mountain Pipeline (TMX) and the East Africa Crude Oil Pipeline (EACOP).

We built a fake pipeline outside Lloyds of London. Through previous actions outside Lloyds of London, we know that there are many sympathetic staff who do not support their workplace insuring the expansion of the Trans Mountain Pipeline and the East Africa Crude Oil Pipeline. Therefore we are asking staff to sign an open letter to John Neal, CEO of Lloyds of London. The letter demands that he make a clear statement that no Lloyd’s syndicate shall renew or provide insurance for TMX or EACOP, and implement a policy to stop the underwriting of fossil fuel expansion and other carbon-intensive projects by all members of the Lloyd’s marketplace.

We want to shed light onto Lloyd’s of London's appalling environmental record, and the colonialist practices from which Lloyd’s of London grew. From the insurance of slave ships, to the insurance of climate-destroying projects that dispossess indigenous peoples of their land, Lloyd’s of London have blood on their hands.

The TMX pipeline carries diluted bitumen, which is a fossil fuel and the expansion of it leads to further climate catastrophe for local communities and globally. The proposed expansion would transport an additional 590,000 barrels of oil daily, tripling its current capacity.

An increase of this scale cannot be justified at a time when leading scientists have made it clear that there is no room for any additional fossil fuel infrastructure, nor considering the devastating impacts of tar sands specifically. To meet the urgency of the climate crisis, we need to unite together and take action to increase the pressure like never before. In the run-up to Lloyd’s of London’s AGM we have been asked to help indigenous Land Defenders in Canada to cut off insurance to the Trans Mountain Pipeline.

“The Trans Mountain tar sands pipeline threatens my nation and our sacred Sleilwaut (Burrard) inlet; our place of creation. The pipeline poisons our clam beds and violates the rights of many Indigenous communities along its length and at its source. Expanding tar sands extraction and increasing the capacity of the Trans Mountain pipeline network is nothing less than climate destruction,” said Kayah George of Tsleil-Waututh Nation and Tulalip Tribes. “The Lloyd's marketplace and syndicates like Arch urgently need to get the message: it’s time to move away from dirty fossil fuels and instead uplift Indigenous rights, a healthy environment, and a stable climate.”

Campaigning efforts to stop the insurance of the TMX pipeline in 2020 led to three insurance companies cutting ties with the pipeline: Zurich (the lead insurer), Munich Re, and Talanx. We are hoping to build on this momentum to drive away more insurers this year. Already this year specialty insurance and reinsurance firms Aspen Insurance and Arch Insurance have confirmed that they do not plan to renew their insurance of the Trans Mountain Tar Sands Oil Pipeline project when its current insurance policy expires this summer.

The confirmation sees 18 insurance companies that have either dropped Trans Mountain or vowed to rule out insuring the Trans Mountain Expansion Project as climate advocates call for the insurance industry to shore up climate strategies. Lloyd’s of London must follow suit.

Lloyd’s of London member Arch Insurance has committed to no longer insure the Trans Mountain tar sands pipeline after its current insurance policy expires this summer. Arch joins seventeen insurance companies, including fellow Lloyd’s syndicate Aspen most recently, that have dropped Trans Mountain or vowed not to insure the Trans Mountain Expansion Project.

Amid pressure from activists to break ties with the tar sands pipeline expansion, in an email to Coal Action Network, a spokesperson for Arch stated:

“We can confirm that Arch Capital Group Ltd, on behalf of its underwriting operations, will not issue any future insurance policies covering the Trans Mountain Pipeline.”

Climate catastrophe stalls pipeline progress

Trans Mountain experienced firsthand the impacts of climate chaos in 2021. Following historic wildfires in the summer, November brought extreme flooding and mudslides that shut down the existing line for three weeks. This resulted in over two months of lower capacity oil flow.

Flooding displaced over 14,000 meters of stockpiled pipe meant for the expansion, and the company had to use hundreds of meters of pipeline from the new construction project to repair the old line.

More than 18,000 people were displaced from their homes in the climate catastrophe.

Flooding: An insurance liability

Trans Mountain pipeline expansion faces severe flooding and river crossing risks which should make insurers run a mile.

Equipment and generators were submerged in the flooded Coquihalla River; then the storms of November 2021 hit, adding half a billion dollars to the project cost.

Despite this, TMX continues to operate recklessly in flood-risk zones according to Ian Stephe of the WaterWealth Project :

"The company is recklessly setting the stage for further problems at the Vedder River crossing in Chilliwack where the river overflowed dikes. The company filed a geotechnical report that was withheld during route approval hearings and that only finds this major river crossing feasible as planned based on assumptions that were outdated when the report was written and that remain unmet. As a community member with a long history on this project, I am concerned about the impacts from this pipeline on waterways, and insurers should be too."

Is TMX un-fundable?

Charlene Aleck of the Tsleil-Waututh Nation Sacred Trust Initiative raised the question; who will fund a project this as risky as TMX?

"As the 18th insurer to rule out Trans Mountain, Arch is confirming that fossil fuel projects without Free Prior and Informed consent are a material risk. Trans Mountain's steps to keep their insurers secret will not stop the momentum towards a safer and more just world. Trans Mountain is currently looking for more financing to continue construction, but who will fund such a risky project?"

Lloyd's is failing its members

According to the last insurance certificate with company names listed, Lloyd’s syndicates collectively were the biggest insurer for Trans Mountain. Chubb and Zurich were the biggest individual insurers listed providing coverage, but since then, both Chubb and Zurich have cut ties, making Lloyd’s a remaining top target.

By refusing to rule out Trans Mountain across its marketplace, Lloyd’s of London is failing its members and the millions of people whose lives are being destroyed by climate change. With their understanding of risk, why hasn't the industry taken action decades ago?

The targets to stop TMX

With Arch and Aspen cutting ties, Beazley and CNA Hardy are the prime targets for public pressure.

This could all be avoided if Lloyd’s ended insurance for fossil fuels across its marketplace.

Lloyd’s of London has increasingly been the target of protests in the UK for its connection to the pipeline in the lead up to Lloyd’s of London actual Annual General Meeting on May 19. Resistance has included 60 people from Extinction Rebellion blocking the entrances at their iconic headquarters last month and a climate memorial led by Pacific Islanders and youth strikers from climate change-affected communities.

Frontline resistance is working

Delayed by over a decade of powerful Indigenous-led resistance, court cases, corporate campaigning, construction mishaps, and cost overruns, TMX is on it's knees. Matt Reml, (Lakota) Mazaska Talks says:

“Thanks to the effort of frontline Indigenous communities and grassroots activists, Lloyd’s of London syndicate Arch Insurance joins a growing list of insurance companies committing to no longer providing insurance for the Trans Mountain tar sands pipeline. This is a victory for Indigenous rights, environmental and climate justice. It is time for the Trudeau administration to end the Trans Mountain pipeline."

The projected cost of the Trans Mountain expansion project has quadrupled, according to recent numbers from the Canadian Ministry of Finance. The current price tag is approximately CA$21.4 billion, and the federal government pledged that it would not provide any additional funding. This leaves the budget $8.8 billion CAD short, demonstrating overwhelming opposition and challenges to building oil and gas pipelines.

Lloyd’s of London member Aspen Insurance has pledged to cut ties with the Trans Mountain (TMX) tar sands pipeline after its current insurance policy expires in summer 2022.
In an email to Coal Action Network, a spokesperson for Aspen stated:

“As a matter of corporate policy, Aspen does not comment on the specifics of any application for insurance we receive, any insurance or reinsurance contract we underwrite, or any claim we pay, however, we can confirm that we do not plan to renew the Trans Mountain Tar Sands Oil Pipeline project.”

Aspen is the seventeenth insurers to rule out insuring the toxic pipeline. It follows Chubb and Argo Group in 2021, which cited climate, environmental, and social risks.

Front-line community leaders supported the move. Charlene Aleck of the Tsleil-Waututh Nation Sacred Trust Initiative said:

“Aspen is joining insurance industry leaders in recognizing that fossil fuel infrastructure projects that don’t have Free Prior and Informed Consent are a material risk. It’s time for the rest of the Lloyd’s syndicates and the whole insurance sector to follow suit before the climate crisis gets worse”

A growing number of insurers have recognized the massive risks of the 69-year-old pipeline. The project would increase emissions equivalent to 2.2 million cars and has been delayed for years in the face of Indigenous-led resistance.

The Intergovernmental Panel on Climate Change and the International Energy Agency reports have made it clear. Any new fossil fuel infrastructure is incompatible with global climate goals of limiting temperature increases to below 1.5 degrees C. This includes the Trans Mountain pipeline.

Lloyd’s of London has been the target of a range of protests around the Trans Mountain pipeline. 60 people from Extinction Rebellion blocked the entrances at their iconic headquarters last week. A climate memorial was led by Pacific Islanders and youth strikers from climate change-affected communities.

Since this campaign began, we've seen insurers at Lloyd’s of London come under increasing pressure to cut ties with Trans Mountain. Aspen is listening, but Lloyd’s syndicates like Arch and Beazley must follow suit. We need a step change across the whole Lloyd’s marketplace.

We are calling for leadership that mandates all insurers in their marketplace to end underwriting of new fossil fuel projects. While Lloyd’s CEO John Neal blocks meaningful climate action, we expect to see ongoing protests on Lloyd’s doorstep.

In February 2021, the Canadian-owned Trans Mountain corporation petitioned the Canada Energy Regulator to keep the names of its insurance backers secret. It stated that it had “observed increasing reluctance from insurance companies to offer insurance coverage for the Pipeline and to do so at a reasonable price.”

This shows that the tar sands exclusion policies increasingly adopted by insurers are having a tangible impact on the price and availability of insurance for the sector.

According to recent numbers from the Canadian Ministry of Finance, the projected cost of twinning the Trans Mountain pipeline has nearly tripled. The latest figures show that the current price tag is approximately CA$21.4 billion, and the federal government pledged that it would not give any more money to the pipeline. Elana Sulakshana, Senior Energy Finance Campaigner at Rainforest Action Network said:

“This announcement from Aspen makes clear that the Trans Mountain pipeline network is facing serious risks that financial institutions do not want to support: lack of consent from Indigenous communities, decaying infrastructure, mounting costs, and a massive carbon footprint."

Insurance giant rules out support for new coal, tar sands, and Arctic energy exploration projects and commits to Net Zero emissions by 2050 for underwriting and investments

American International Group Inc. (NYSE: AIG) today announced major new company-wide climate commitments, including commitments to no longer provide underwriting and investments in the construction of any new coal-fired power plants, thermal coal mines, or oil sands. Further, the company will stop providing insurance cover and investments in any new Arctic energy exploration.

The commitments, which come after years of pressure from Public Citizen, Insure our Future, and other environmental groups, will also phase out existing underwriting and investments in companies by January 1, 2030 with 30 percent or more of revenue from coal or oil sands, or 30 percent electricity generated from coal.

“As one of the last major insurers without restrictions on coal insurance, AIG’s new commitments to reduce underwriting for coal, tar sands oil, and Arctic oil and gas are a major step forward for people and the planet,” said Hannah Saggau, insurance campaigner with Public Citizen. “AIG has vaulted itself from a laggard in the industry to a leader in the U.S., and we look forward to working with it to meet and improve on these commitments.”

In addition to pumping the brakes on coal and tar sands projects, AIG is also committing to reach net zero greenhouse gas emissions across its underwriting and investment portfolios by 2050 and adopt science-based emissions reduction targets in line with the goals of the Paris Agreement. In the company’s statement, AIG committed to release more information about its phase-out of fossil fuels in the coming months and to provide transparent reporting of its progress.

For over a year, Public Citizen has used direct actions, petition drives, policy advocacy, and behind the scenes pressure aimed at AIG and its CEO Peter Zaffino to demand the company stop supporting the fossil fuel expansion driving the climate crisis.

Today’s announcement marks the beginning of a new chapter in the campaign to improve AIG’s fossil fuel policies. AIG joins over 37 companies that have committed to end or restrict insurance for new coal projects, including Travelers, which recently adopted a policy. Among major U.S. insurance companies analyzed in Insure Our Future’s 2021 Scorecard on Insurance, Fossil Fuels, and Climate Change, only Berkshire Hathaway and W.R. Berkley still underwrite coal with no restrictions.

While these commitments represent major steps, the new AIG policy needs clarification and improvement.

“Ending support for coal expansion projects is strong and necessary—and it should be extended to all fossil fuels,” said Saggau. “The International Energy Agency has made it clear that to avoid climate catastrophe, there is no room for any fossil fuel expansion. AIG’s commitment to science-based climate targets should mean an end to all fossil fuel expansion, but today’s announcement doesn’t address that question.”

The new policies could have real impacts on ongoing projects around the world.

Notably, AIG’s commitment makes it the first U.S. insurer to rule out insurance for Arctic energy exploration, which pose grave threats to Indigenous rights and local ecosystems. At least 12 insurers have restricted support for oil and gas drilling in the Arctic Refuge. At the same time, however, today’s release from the company does not clearly define what areas of the Arctic nor what kind of energy exploration activities are covered by its commitment, nor does it implement a broader policy to ensure that all of the projects it insures have obtained the Free, Prior, and Informed Consent of impacted Indigenous communities.

In Canada, in the most recently publicly available insurance certificate, AIG provided coverage for the Trans Mountain Pipeline. The pipeline is a major environmental hazard and a violation of First Nations’ rights, and its expansion project consists of an entirely new pipeline that would ship more than 590,000 barrels per day of highly polluting tar sands crude oil to the coast of British Columbia. While the commitments released today ruled out insurance for the construction of any new oil sands projects, it is not clear if this includes tar sands transport projects like the Trans Mountain expansion.

“As one of the remaining potential insurers of the Trans Mountain pipeline, AIG’s commitment to rule out insurance for some tar sands projects is a first step but not enough,” said Charlene Aleck, spokesperson for the Tsleil-Waututh Nation Sacred Trust Initiative. “The Trans Mountain pipeline violates Indigenous rights and threatens our land, water, and climate. With the cost ballooning to C$21.4 billion, and the need for more private investment, this pipeline is as risky as ever. AIG must wake up to the significant financial, reputational, and environmental risks of the highly polluting tar sands sector and explicitly rule out insurance for all new tar sands transport projects.”

Written by Insure Our Future

Last Friday 29th October, on the eve of COP26 climate talks, Coal Action Network, Extinction Rebellion North East and Newcastle Youth4Climate set up a climate justice memorial at Chubb Insurance (116 Quayside). The climate memorial was created to remember communities on the front lines of climate breakdown, who are being directly impacted by harmful projects and climate impacts. Members of local campaigns against coal mining - from West Cumbria, Dewley Hill and Pont Valley - also spoke at the memorial.

Jack from Newcastle Youth4Climate said "In our memorial, we remember the damage the climate crisis has caused and reflect on what the future may hold for our planet and its young people. By doing this, we are reminding the companies on our doorstep that they are directly profiting from and responsible for the loss of lives, nature and communities from the climate crisis."

Chubb Insurance is a syndicate of the Lloyd’s of London insurance market. Composed of many underwriters and insurance companies, Lloyd’s and its members are known for insuring projects that no one else will, which increasingly includes climate-destroying fossil fuel projects. Without this insurance, these projects would struggle to succeed, making insurance a major weak spot for the mining industry.

In 2020, Lloyd’s published an Environmental, Social and Governance Report. Campaigners said today that its commitments are not enough. Lloyd’s still allows members to acquire new business in these sectors, and is continuing to provide them cover until 2030. There is no mention of insurance and investment in coking coal, or other gas and oil projects, despite Lloyd’s being amongst the four largest insurers of fossil fuel projects.

Protesters were joined by activists from West Cumbria, Defend Dewley Hill and Protect Pont Valley, who spoke about their experiences of resistance to extractivist coal projects in their communities, and why financial companies like Lloyd’s need to urgently rule out insuring them. The memorial also used soundscapes from testimony previously compiled, including those of members of the Pacific Climate Warriors and of the Wangan and Jagalingou People (who are the traditional custodians of the land where Adani want to build the Carmichael coal mine), insured by Lloyd’s and Chubb.

June Davison, from the Campaign to Protect Pont Valley said: “We have seen first hand the damage that opencast coal extraction can cause, and the destruction for local communities. We have learned that the opencast site that Banks operated near our home was minute compared to mining in other parts of the world, including the Hambach Forest in Germany and the Adani mine in Australia. We know that financial institutions have supported opencast in the North East of England, and it is short sighted that Lloyd’s would insure the most devastating fossil fuel in existence.”

Members of the public laid hundreds of flowers and messages to Lloyd’s of London from over 4,500 people across the world were hung outside the offices, as well as delivered to Lloyd’s Chairman, Bruce Carnegie Brown. These messages are also viewable online at: https://lloydsclimatememorial.org/ .

This action is the latest to target Lloyd’s of London and Chubb Insurance, including a previous action that happened in May at the same location. The action today forms part of a Defund Climate Chaos day of action, with groups across the world taking similar actions on the doorsteps of a range of financial and insurance institutions. On the same day, in the morning in London, Coal Action Network facilitated a climate memorial at Lloyd’s HQ.