As the planet heats up, big companies balk on their climate pledges
When the insurance giant AIG rattled the industry last year with an audacious plan to stop writing policies for some of the most heavily polluting fossil fuel projects, environmentalists and lawmakers showered the company with plaudits.
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Now they are quickly losing patience with it.
Like so many other large companies pledging to help the world avert climate catastrophe, AIG is finding that making such vows is easier than making good on them. The company is now a target of a Senate investigation into the insurance industry, led by lawmakers who warn that AIG and other companies continue to play a pivotal role in underwriting some of the most carbon-intensive fossil fuel projects in the world — despite lofty climate promises.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”