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Media Release

Media release: Suncorp dumps thermal coal

26 July 2019

26 July 2019

In response to Market Forces lodging a shareholder resolution, Suncorp has revealed it is exiting the thermal coal sector, meaning there are now no Australian insurers willing to underwrite new thermal coal mines and power stations.

A Suncorp spokesman told InsuranceNews, “Suncorp does not directly invest in, finance or underwrite new thermal coal mining extraction projects, or new thermal coal electricity generation, and we will phase out these exposures by 2025”.

The comments foreshadow a new climate change policy formalising the financial services company’s exit from thermal coal. 

Suncorp is the second Australian insurance company to announce an exit from thermal coal this year, after QBE committed earlier in the year to phase out its exposure to thermal coal by 2030. 

Market Forces Campaigner, Pablo Brait, said of the development: 

“Suncorp’s dumping of coal means there is now not one single major Australian insurer willing to provide insurance for new, climate-wrecking thermal coal projects.”

Market Forces last week lodged a shareholder resolution with AGL, calling on the company to set targets for reducing greenhouse gas emissions in line with the goals of the Paris Agreement on climate change. This would necessitate AGL retiring all of its coal power plants by 2030. 

“Any company wanting to run a coal-burning power station past 2030 will now be unable to get an Australian insurer to back it. AGL and Origin might want to take note” said Mr Brait. 

“Any company wanting to run a coal-burning power station past 2030 will now be unable to get an Australian insurer to back it. AGL and Origin might want to take note” said Mr Brait.

Suncorp’s commitment does not change Market Forces’ intent to take the resolution to its annual general meeting later this year. The resolution asks Suncorp to set targets for the phase out of all fossil fuels – coal, oil and gas – in its investments and underwriting, meaning today’s announcement only partially deals with shareholders’ concerns. 

“While Suncorp’s progress on thermal coal is exciting, the fossil fuel sector is far broader and without action on oil and gas, there is a risk that Suncorp ends up trading one massive climate risk for another over time.

“While Suncorp’s progress on thermal coal is exciting, the fossil fuel sector is far broader and without action on oil and gas, there is a risk that Suncorp ends up trading one massive climate risk for another over time.”

“The impacts of climate change pose severe risks to humanity and those risks are already showing up on the balance sheets of insurance companies. Shareholders and investors need assurance that Suncorp is doing everything possible to minimise the risks of climate change”, said Mr Brait. 

For further comment please contact Pablo Brait.