California Insurance Commissioner Ricardo Lara on Monday issued a new report and webpage detailing insurer investments in fossil fuels.
The report is a study of fossil fuel investments by insurers, identifying insurance company holdings in green bonds that support clean energy investments and other environmental projects.
“We need more climate-focused investments to solve our climate crisis, including from insurance companies that must do more to protect consumers and the environment,” Insurance Commissioner Ricardo Lara said in a statement.
Visitors to the California Department of Insurance website can type in the name of their insurance company to find out what percentage of their premiums are invested in fossil fuels.
The American Property Casualty Insurance Association has been reached out to for comment.
Lara is working with other states to beef up climate disclosures at the national level. He led a bipartisan effort by the National Association of Insurance Commissioners to adopt a new global standard for reporting insurance company climate risks on April 8 in alignment with the Task Force on Climate-Related Financial Disclosures, or TCFD. Insurance regulators from France, Switzerland, and the United Kingdom currently require TCFD-aligned reports.
U.S. financial regulators such as the U.S. Securities and Exchange Commission are also taking steps toward requiring TCFD-aligned disclosures for other financial institutions.
The CDI’s new website and report are part of a “Sustainable Insurance Roadmap” that Lara is finalizing with the United Nations that includes increasing green investments, sustainable insurance products, and nature-based solutions as the core of the strategy.
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