Japanese insurance companies to restrict coal finance
Japanese financial institutions take first step towards divestment from coal
Dai-ichi Life Insurance announced it is no longer funding coal-fired power plants overseas, becoming the first Japanese institution to do so.
Similarly, Nippon Life Insurance is planning to restrict financing for coal plants, according to local reports.
These institutions maintain and invest huge amounts of assets into various types of projects. Their shift away from the financing of coal plants reflect a trend led by global insurers in sustainable investing.
Major European insurance firms such as AXA and Allianz are leading the way by divesting from businesses that are involved in large-scale coal-fired power plant expansion projects. The trend could expand throughout the financial sector.