The Hartford has committed to invest $2.5bn over the next five years in companies, technologies and funds which are advancing the energy transition in one of several sustainability initiatives announced by the carrier.
The New York Stock Exchange-listed group has also strengthened its commitment to end all tar sands investments. The Hartford said these will now be exited by 31 December this year, two years ahead of its previously committed schedule.
The company has reiterated its previous commitment to exit coal investment holdings by the end of 2023.
The commitments come as The Hartford becomes one of the first US P&C insurers to sign up to the UN Global Compact, a voluntary initiative based on CEO commitments to implement universal sustainability proposals.
The Hartford’s chairman and CEO Christopher Swift said the transition to a greener society was a “business imperative”.
“We are demonstrating our environmental commitment through our actions across the business, ranging from insurance solutions that encourage sustainable construction to investments by the company in renewable energy,” he said. “We are proud of our progress and remain determined to use our resources responsibly to address the challenge of climate change.”
Previous ESG commitments made by The Hartford include a pledge to stop insuring or investing in companies that generate more than 25 percent of their revenues from thermal coal mining or more than 25 percent of their energy production from coal.
The carrier also offers premium discounts to encourage the purchase of electric vehicles and the use of energy-efficient equipment and building materials.
The Hartford said it met its goal of 100 percent renewable energy source consumption for all its facilities in 2020 – 10 years ahead of its deadline, and remains on course to achieve its previously stated goal of reducing greenhouse gas emissions by 2.1 percent each year to ensure a total reduction of 46.2 percent by 2037, compared with the baseline year of 2015.