Comptroller Stringer and Pension Fund Trustees Call on Major Insurance Companies to Sever All Ties with the Coal Industry
Citing both protecting clients from harm due to damages incurred from climate change and responsibility to long-term shareholder value, Stringer and Pension Fund Trustees call on Berkshire Hathaway, AIG, and Liberty Mutual insurance companies to cease underwriting coal projects and divest from the industry
Coal accounts for approximately 40 percent of global carbon emissions
Berkshire Hathaway, AIG, and Liberty Mutual Insurance held more than $6.7 billion combined in coal investments as of 2017
(New York, NY) — Today, New York City Comptroller Scott M. Stringer, on behalf of the New York City Employees’ Retirement System, Teachers Retirement System of the City of New York and New York City Board of Education Retirement System, sent letters to the executives of Berkshire Hathaway, AIG, and Liberty Mutual Insurance calling on the three multi-national insurance companies to take immediate action to end all business ties with the coal industry, including ceasing to underwrite any coal projects and divesting any holdings in companies that extract or distribute thermal coal. The letters cite the companies’ coal investments as incompatible with both their missions to protect clients from the harmful effects of climate change and their obligation to ensure long-term value for shareholders. The three aforementioned New York City pension funds have already divested from coal — one of the most noxious and emission-intensive fossil fuels.
“Divesting from the coal industry is the right thing to do for our planet, our future, and our children – and it’s the smart thing to do for investors and shareholders,” said Comptroller Stringer. “The science is clear: coal is polluting our air, water, and ecosystem. Continuing to invest in coal projects will only create greater financial risk, potential liability, and future cost-burdens in the short and long term. We urge the executives of Berkshire Hathaway, AIG, and Liberty Mutual to be forward-thinking and act now to cut off their financial ties with the coal industry.”
Coal is among the most destructive and emission intensive fossil fuels. In the letters, Comptroller Stringer noted that coal accounts for approximately 40 percent of global carbon emissions, making it a risky business venture with at least seven major coal companies filing for bankruptcy in the past year. Berkshire Hathaway, AIG, and Liberty Mutual Insurance have all continued to support the coal industry to various degrees despite 19 insurance and reinsurance companies limiting their underwriting of coal and 35 others committing to some form of divestment including Swiss Re, Zurich, Chubb, and AXIS Capital. Together, Berkshire Hathaway, AIG, and Liberty Mutual Insurance represent more than $6.7 billion in coal investments as of 2017. Liberty Mutual has committed to phasing out future investments in coal, though has not moved to divest its existing portfolio of coal investments.
Comptroller Stringer serves as the investment advisor to, and custodian and a trustee of, the New York City Pension Funds.
In addition to Comptroller Stringer, the participating New York City Pension Funds’ trustees are:
New York City Employees’ Retirement System (NYCERS): Mayor Bill de Blasio’s Representative, John Adler (Chair); New York City Public Advocate Jumaane Williams; Borough Presidents: Gale Brewer (Manhattan), Sharon Lee (Queens), Eric Adams (Brooklyn), James Oddo (Staten Island), and Ruben Diaz, Jr. (Bronx); Henry Garrido, Executive Director, District Council 37, AFSCME; Tony Utano, President Transport Workers Union Local 100; Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.
Teachers’ Retirement System (TRS): Mayor Bill de Blasio’s Appointee, John Adler; Chancellor’s Representative, Lindsey Oates, New York City Department of Education; Natalie Green Giles; and Debra Penny (Chair), Thomas Brown and David Kazansky, all of the United Federation of Teachers.
Board of Education Retirement System (BERS): Schools Chancellor Richard Carranza; Mayoral: Isaac Carmignami, Natalie Green Giles, Vanessa Leung, Gary Linnen, Lori Podvesker, Shannon Waite, Miguelina Zorilla-Aristy; Michael Kraft (Manhattan BP), Debrorah Dillingham (Queens BP), April Chapman (Brooklyn BP), Geneal Chacon (Bronx BP) and Peter Calandrella (Staten Island BP); and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.
To read the letter to Berkshire Hathaway, click here.
To read the letter to AIG, click here.
To read the letter to Liberty Mutual, click here.
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