MS&AD the latest Japanese insurer to face criticism for ‘weak’ coal policy

Tokyo-based MS&AD is the latest Japanese insurer to be attacked for its allegedly "weak" position on insuring coal by various NGOs, led by Insure Our Future, a US-based environmental, consumer protection and grassroots organisation that says its mission is to hold the insurance industry accountable for its role in the climate crisis. MS&AD came under fire after it became the latest Japanese insurer to publish its position on underwriting coal power projects as part of its updated plan on sustainable business principles. Insure Our Future and fellow groups said that, like its counterparts Tokio Marine and Sompo, MS&AD’s coal position is a “misleading attempt to brand itself as sustainable”. Tanya Roberts-Davis, Insure Our Future's east Asia finances adviser, said: “Although MS&AD trumpets its aspirational commitment to become sustainable, its investment and underwriting activities fail to mirror such lofty ideals. MS&AD’s weak policy on sustainable principles falls behind other global insurance companies that have already started to take meaningful steps towards averting climate chaos by actually veering away from the coal industry.” Yuki Tanabe, programme director at the Japan Center for a Sustainable Environment and Society (JACSES), added: “Sompo, Tokio Marine and MS&AD have adopted entry-level coal policies that are just at the start line; now they must race to the top to ensure consistency with the long-term goals of the Paris Agreement. The three insurers should strengthen their coal policies and commit to not underwrite insurance for any new coal-fired power projects.” A joint statement issued by the activist groups said MS&AD’s corporate statement on sustainable business activities states that it “will not underwrite or invest in new coal-fired power plants”. But the insurer caveats this by saying that this commitment is dependent on first ensuring a “stable energy supply of the country concerned”. The group statement said that, as a result of this requirement, the door is left “wide open” for the company to continue on a “business as usual” basis, engaging with coal power companies and underwriting projects around the world, without regard for the earth’s finite resources and impacted communities. Takayoshi Yokoyama, leader of 350.org Japan, said: “MS&AD’s coal position announced today is just as weak as its counterparts in terms of coal investments and underwriting. It is vital that MS&AD and other mega insurers adopt more robust policies that abolish coal-fired power stations completely by 2030.” The statement pointed out that the insurer's position fails to incorporate the entire value chain of coal and neglects to offer targets for divesting from companies or assets with significant exposure to coal, as per the Global Coal Exit List, a public database that provides key statistics on companies throughout the entire thermal-coal value chain. “It is also not clear whether this new policy is applicable to all of its corporate business affiliates currently specialising in resource extraction and energy, including MS Amlin,” added the groups. A group of Japanese NGOs from the No Coal Japan campaign also urged MS&AD to establish a firm policy in which it commits to withdrawing all support from companies and projects associated with the coal value chain.

MS&AD the latest Japanese insurer to face criticism for ‘weak’ coal policy

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