Finance Businesses Moving To Phase Out Coal
Japanese financial companies are moving to stop investing in or financing coal-fired power stations, in an effort to help reduce greenhouse gas emissions.
A major non-life insurance company, Sompo Japan Insurance, plans to end investment and financing for the construction of new fossil fuel power plants, which are inefficient and emit large amounts of carbon dioxide.
The company will also stop underwriting insurance policies for coverage of disasters related to the plants.
It plans to implement the measures from December.
Two other non-life insurers, Tokyo Marine Holdings and MS & AD Holdings, are considering adopting similar policies.
Behind the move is the global challenge of reducing greenhouse gases based on the Paris Agreement, an international framework to fight global warming.
The move to phase out coal is accelerating in the Japanese financial industry, as more people are focusing on investing in ESG, which stands for "environment," "social," and "governance."
Some major Japanese banks and life insurance companies have already canceled investment in and loans to coal-fired power plants.
