On 5 June, Unfriend Coal welcomed Austrian insurer VIG's announcement of a strengthened coal policy, but warned that it does not meet the need for a rapid phase-out of coal to meet Paris climate targets.
The insurer commits to making no new investments in companies which derive more than 30% of sales from coal mining, among other criteria, a significant improvement on its previous 50% threshold. It also commits to reduce ‘inappropriate’ existing coal investments by 50% by 2025, with a complete phase-out deadline of 2035.
In countries which have set plans to phase out coal, VIG commits not to renew risk insurance for coal mines, power plants or companies which derive more than 30% of sale from coal mining, among other criteria. In countries without a coal phase-out plan, the policy now requires existing clients to ‘present a credible plan for exiting coal-fired generation with a just transition plan within two years’.