Due to the imminent danger of climate change, The Hartford Financial Services Group Inc. has finally decided to limit or drop its coverage of energy companies in the fossil fuel businesses.
According to the insurer, they will stop providing coverage to companies with more than 25% of energy production from coal, and companies with 25% or more revenue from thermal coal mining will not be covered as well. In addition, The Hartford will no longer make investments or write policies for new coal-fired plants and companies that make 25% revenue from extracting oil from tar sands.
The Hartford was the latest insurer to join other insurance companies that already limited their coverage of energy companies with heavy reliance on fossil fuels. According to The Hartford’s CEO, Christopher Swift, they were concerned about global warming, and they wanted to support economic growth without posing risks to the planet.
Based on the statement released by the Rainforest Action Network, The Hartford was the first mainstream insurer in the US to limit coverage for coal and tar sands oil. However, they said that there were loopholes with the insurer’s new policy since it doesn’t address companies below the 25% threshold.
Now, the Rainforest Action Network is urging The Hartford to drop insurance for new tar sands pipelines and new coal mines. The environmental organization also suggested to rule out insurance for all companies that aim to expand their use of coal and tar sands.