New York City Comptroller Scott Stringer has called on AIG, Berkshire Hathaway and Liberty Mutual to divest and cease underwriting coal related businesses.

Acting on behalf of three of the city's pension funds, Stringer told the insurers in individual letters that the coal sector is “incompatible both with your obligation to protect your clients from harm...and your responsibility to protect and create long-term shareholder value”.

The three New York City pension funds, 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, have already divested from coal themselves.

“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.”

Together, Berkshire Hathaway, AIG, and Liberty Mutual Insurance represent more than $6.7bn 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.

The letters point to divestment by BlackRock (divesting $1.8tr in actively managed funds from any firm generating more than a quarter of revenues from thermal coal) and Goldman Sachs (ruling out direct finance for new or expanding thermal coal mines and coal-fired power plant projects worldwide, as well as direct finance for new Arctic oil exploration and production) as examples of the direction of travel on coal. To date 19 insurance and reinsurance companies have issued policies limiting their underwriting of coal and as many as 35 insurers have committed to various forms of divestment from coal, including Swiss Re, Zurich, Chubb, and AXIS Capital.

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