Hannover Re SE assumes a more restrictive insurance policy on reinsurance of carbon-based risks in addition to excluding coal-based projects from its investment portfolio.
Hannover Re does not invest in securities from issuers that generate 25% or more of their revenue from coal-based energy production and will continue to attempt to sign more risks associated with renewable or alternative energy sources, said the German-based reinsurance on Thursday in a statement.
"If it concerns independent risks, the company will now – as a general principle – not provide reinsurance protection for planned new coal-fired power plants or coal mines," says Hannover Re. "In countries where coal accounts for a particularly large part of the energy mix and sufficient access to alternative energy sources, it is not possible, a limited number of exceptions will be allowed after review of the technical standards."
Hannover Re has set a goal not to cover any carbon-based risks associated with power production throughout its reinsurance portfolio for property and accident insurance that began in 2038 ̵
"For many years, the Group has supported the goals set out in the Paris Agreement on Climate Change," Hannover Re says in the statement. "The governments of 195 countries reached an agreement on a global action plan for a low-carbon economy to combat climate change. Only in Europe, 17 out of 28 EU Member States have decided to phase out fossil fuels or discuss such a move."