Munich Re, the world’s biggest reinsurer, will stop investing in bonds and shares of companies that generate more than 30 percent of their sales with coal-related business, its chief executive said, caving to pressure from investors.
“In the individual risk business, where we can see the risks exactly, we will in future in principle no longer insure new coal-fired power plants or mines in industrial countries,” Joachim Wenning added in a commentary to be published in German daily Frankfurter Allgemeine Zeitung on Monday [Aug. 6].
Policy makers are compelling companies to do more to reach a goal set in Paris in 2015 to reduce global warming by less than 2 degrees Celsius. Investors are using increasingly common financial muscles to reward this transition.
Swiss Re, the number two Swiss representative in terms of stocks, watched the French peer Scor in July, revealing that the thermal carbine, which accounted for more than 30 percent of the work, could not hold any company hostage.
Despite being a vocal supporter of the Paris deal, Munich Re said last month that it planned to copy Swiss Re to restrict the loading of coal companies.
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