March, 01 2022, 01:11pm EDT
AIG's New Climate Commitments a Major Step Forward for Insurance Industry's Transition Away from Fossil Fuels
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
WASHINGTON
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 behindthe scenespressure 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 poses 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."
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
'For the Workers, Not the Billionaires': Bernie Sanders to Join Nationwide Rallies for May Day
"Bernie knows that when the working class—labor, immigrants, community members—stand together, we are force that can defeat any bad boss," said the Philadelphia chapter of the AFL-CIO.
Apr 29, 2025
As U.S. Sen. Bernie Sanders continues his nationwide Fighting Oligarchy tour, the longtime economic justice advocate is joining forces with organizers of another major mass mobilization against the "Billionaire Agenda" that has left working families struggling to afford healthcare, education, and the rising cost of living.
On Thursday, one of more than 1,100 May Day rallies will be held at Philadelphia City Hall, where Sanders (I-Vt.) will join the city's AFL-CIO chapter under the banner, "For the Workers, Not the Billionaires."
Announcing that Sanders will speak at the rally at 4:00 pm Thursday, the union said on Facebook that "Bernie knows that when the working class—labor, immigrants, community members—stand together, we are force that can defeat any bad boss... When workers fight, workers win!"
As Common Dreams reported last week, labor unions and advocacy groups are planning rallies in nearly 1,000 cities across all 50 states to mark May 1 or May Day, which commemorates the struggles and victories of the labor movement throughout history.
The events are taking place more than two months into Sanders' Fighting Oligarchy tour, during which he and Rep. Alexandria Ocasio-Cortez (D-N.Y.) have drawn crowds of thousands in Republican districts in Nebraska, Iowa, Idaho, and other states—addressing a total of 250,000 people, about a third of whom are not registered Democrats, according to Sanders' office.
Advocates say the tour has demonstrated the broad appeal of the progressive lawmakers' prioritizing of issues that impact working families, their demand that the Democratic Party aggressively fight the Trump agenda in any way that they can, and their rejection of billionaires' and corporations' encroachment on the U.S. political system and hoarding of wealth.
Like the Fighting Oligarchy tour, the May Day 2025 rallies aim to "unite working people across race, immigration status, and geography," according to organizers, with attendees demanding:
- An end to the billionaire takeover and government corruption, including tech mogul Elon Musk's spearheading of efforts to slash hundreds of thousands of federal jobs and dismantle agencies;
- Full funding for public schools, healthcare, and housing;
- Protection and expansion of Medicaid, Social Security, and other essential programs that have been attacked by Musk and Trump;
- A halt to attacks on immigrants, Black, Indigenous, trans, and other targeted communities; and
- Strong union protections, fair wages, and dignity for all workers.
After the May Day rally, Sanders is expected to hold events in Harrisburg and Bethlehem, Pennsylvania—located in two of the state's most competitive swing districts that are represented by Republican Reps. Scott Perry and Ryan Mackenzie.
Keep ReadingShow Less
Trump 'Took a Hatchet' to Major US Climate Report by Dismissing All Its Authors
"The only beneficiaries of disrupting or killing this report are the fossil fuel industry and those intent on boosting oil and gas profits," said one person who was working on the 6th National Climate Assessment.
Apr 29, 2025
Hundreds of scientists and experts working on the National Climate Assessment were dismissed by the Trump administration via email on Monday, casting doubt on the future of the federal government's flagship climate report, which was slated to come out by 2028.
On Monday, those working on the 6th version of the report received an email from the Trump administration that the scope of the assessment is being "reevaluated in accordance with the Global Change Research Act of 1990"—in reference to the legislation that mandated the creation of the National Climate Assessment.
"We are now releasing all current assessment participants from their roles," continued the email, the text of which was included in a Monday statement from the group the Union of Concerned Scientists.
"Today, the Trump administration senselessly took a hatchet to a crucial and comprehensive U.S. climate science report by dismissing its authors without cause or a plan," said Dr. Rachel Cleetus, a senior policy director at the Union of Concerned Scientists and an author for the 6th National Climate Assessment (NCA) on the coasts chapter, said on Monday. "People around the nation rely on the NCA to understand how climate change is impacting their daily lives already and what to expect in the future. While not policy prescriptive, the findings of previous reports underscore the importance of cutting heat-trapping emissions and investing in climate resilience to protect communities and the economy."
"The only beneficiaries of disrupting or killing this report are the fossil fuel industry and those intent on boosting oil and gas profits at the expense of people's health and the nation's economic well-being," added Cleetus.
Since entering office, Trump has signed executive orders aimed at bolstering oil, gas, and coal and installed Cabinet members with ties to the fossil fuel industry.
The assessment, which is required by Congress, has been released every few years since 2000 and gives a rundown of how global warming is impacting different sectors of the economy, ecosystems, and communities. The energy and environment focused outlet E&E Newsreported Tuesday that the report is "seen by experts as the definitive body of research about how global warming is transforming the country."
The report last came out in 2023. That National Climate Assessment established that the "effects of human-caused climate change are already far-reaching and worsening across every region" of the United States. The report's authors warned that absent deeper cuts in fossil fuel emissions and accelerated adaption efforts compared to what's currently underway, "severe climate risks to the United States will continue to grow."
Earlier in April, the Trump administration enacted cuts to the U.S. Global Change Research Program, which oversees the production of the National Climate Assessment.
Keep ReadingShow Less
'This Will Gut the FTC': Republicans Push Musk-Backed Plan to Kill Key Antitrust Law
"Jim Jordan and House Judiciary Republicans are directly undermining both current and future litigation against the monopolies that gouge and censor Americans."
Apr 29, 2025
House Republicans are set to consider legislation on Wednesday that experts say would effectively eliminate a law that gives the Federal Trade Commission sole authority to protect the American public from corporations engaging in "unfair methods of competition."
The GOP-controlled House Judiciary Committee, led by Rep. Jim Jordan (R-Ohio), released the bill Monday as part of a sweeping, filibuster-proof reconciliation package that Republicans are looking to pass as soon as next month.
The new bill states that "all FTC antitrust actions, all FTC antitrust employees, all FTC antitrust assets, and all FTC antitrust funding" must be "transferred to the attorney general." The proposal is virtually identical to Republican legislation that Elon Musk, a lieutenant of President Donald Trump and the richest person in the world, endorsed earlier this year.
Matt Stoller, research director at the American Economic Liberties Project, observed Monday that the House Judiciary Committee measure is "not just a bill to change the office locations and reporting structures." Specifically, Stoller noted that the bill doesn't explicitly transfer to the Justice Department the FTC's authority under Section 5 of the Federal Trade Commission Act to combat "unfair methods of competition."
"That authority," Stoller wrote, "remains with an agency that has no staff and no capacity to litigate, which means it could die."
Alvaro Bedoya, who is currently engaged in a legal fight to get his job back at the FTC after Trump fired him and another Democratic commissioner last month, echoed Stoller's concerns, writing on social media that the Republican bill "doesn't transfer the laws that FTC enforces, or authority to enforce those laws."
"This will gut the FTC," Bedoya wrote, noting that the agency's legal action against pharmacy benefit managers—pharmaceutical industry middlemen—would likely be among the casualties of the Republican bill, given that "the sole law that the FTC alleges was broken in all three counts was that core prohibition against 'unfair methods of competition.'"
Stoller pointed out in his blog post that Section 5 is also used "in the antitrust case against Amazon" and "another case against Corteva/Syngenta over exclusive dealing in seeds and chemicals." It was also "the authority used to ban noncompete agreements," he wrote.
"These cases, as well as every consent decree ever reached under Section 5, are now at risk," Stoller added.
The House Judiciary Committee is slated to mark up the legislation on Wednesday afternoon, starting at 2:00 pm ET.
Lisa Gilbert, co-president of Public Citizen, said in a statement Monday that the measure as a whole is "laden with language attempting to protect corporate wrongdoers."
"One provision appears to effectively eliminate the FTC pro-competition division," said Gilbert. "Another set of provisions makes significant changes to the already overreaching Congressional Review Act. One measure says that major rules that raise revenue go into effect only if Congress proactively approves them. Another section says for the next four years Congress has to affirmatively approve rules for them not to expire."
"If made law," she warned, "this would sign a death warrant for a slew of important consumer, worker, and environmental protections."
Keep ReadingShow Less
Most Popular