Green groups tentatively welcome Nationale Nederlanden coal exclusion policy
From 1 July this year, Dutch insurance and asset management company Nationale Nederlanden (NN) said it will “stop providing insurance services to companies that derive more than 30 percent of their revenues from thermal coal mining or that use at least 30 percent thermal coal for power generation".
This is the company's new coal exclusion policy aimed at cutting coal use. It also means that existing insurance contracts that use coal at these levels will not be renewed.
NN said it would develop guidelines to ensure that by 2030, it will only provide new insurance cover to clients that have an exposure of 5 percent or lower to coal-related activities.
However, there are exemptions. NN’s marine cargo business will be exempt from these restrictions “where this includes package and company insurance”. And the firm said that stand-alone coverage of thermal coal transport is not part of NN’s existing product offering and will not be considered in the future. Provision of products or services will also be exempt if they are intended for the benefit of employees (e.g. pension products, workers compensation).
The group said it would restrict its investment in coal “to ‘close to zero’ by 2030” and engage with power generation firms to encourage a move to lower carbon alternatives, adding that it had revised its insurance underwriting policy to “create consistency across its business” and align with the investment side.
However, green campaigners questioned how NN would be able to implement its coal exclusion policy for companies involved in both coal power and mining activity.
They noted that NN is one of the biggest investors in Polish coal, with around €398.4 million investments. Polish coal company PGE is a major coal plant developer, but is also reportedly planning an expansion of the Turow mine. NN’s policy does not state whether the company will exclude PGE, and other such companies, they said. Campaigners also noted that the policy “does not prevent NN from investing in companies planning new coal plants with a coal exposure below 30 percent”.
NN follows Allianz and Hannover Re in its commitment to fully phase out its own assets. The deadline of 2030 is aligned with climate science goals to keep global warming below 1.5°C.
Kees Kodde, campaigner for climate and energy at Greenpeace Netherlands, said: “NN Group is phasing out coal investments - a smart move in times when the public’s call for climate action is unmistakable; losses from extreme weather events are rising for insurers; and the cost of coal is increasing and costs of wind and solar energy rapidly declining.
“NN Group is sending a clear message to the financial sector: investments in coal are outdated and irresponsible. Financial institutions need to walk away from coal and stop investing in burning the planet."
Lucie Pinson, coordinator of the Unfriend Coal campaign, added: “Despite a lack of commitment to implement the policy for all assets managed for third-parties, Nationale Nederlanden is clearly showing the way that other insurers must follow.
“After having adopted an already strong policy on tar sands, Nationale Nederlanden is now showing leadership once more with a science-based commitment to totally phase out coal from its proprietary investment and insurance portfolios by 2030. There is now a clear gap between it and other insurers such as Aegon and Aviva, which remain big drivers of the coal expansion.”
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