American International Group (AIG), a multinational finance and insurance corporation, has announced that it will publish a roadmap explaining how it will fulfill its climate goals and address climate risk. The announcement is a result of ongoing discussion between AIG and its investors and stakeholders, including United Church Funds (UCF).
This action follows a 2024 shareholder resolution by UCF and a group of other responsible shareholders, including Green Century Funds and the Presbyterian Church (U.S.A), calling on AIG to issue a climate transition plan describing how it intends to reduce its financed and operational emissions. The resolution was withdrawn after AIG agreed to publish such a plan.
“This is a significant win, not only for responsible shareholders, but for the planet at large,” said Matthew Illian, UCF’s Director of Responsible Investing. “Back in 2022, AIG set robust goals to significantly reduce the greenhouse gas emissions associated with its insurance and investment portfolios by 2050 or sooner. This was in addition to previously announced operational net zero goals. Now they’re setting forth a plan of action to achieve those goals.”
While AIG is developing climate transition plans in response to regulatory requirements in international jurisdictions, the climate transition plan it intends to deliver to investors will cover its business in the United States as well. The company committed to following the Transition Plan Taskforce Disclosure Framework, one of the most comprehensive and detailed sets of climate transition plan guidance available.
“The insurance industry is pivotal to the transition to a low-carbon economy,” said Green Century Funds President Leslie Samuelrich. “We’re pleased AIG has not only set rigorous targets to reduce greenhouse gas emissions associated with its insurance products and investment practices, but now will be delivering a climate transition plan to provide investors insight into its strategies and next steps.”
Katie Carter, Director of Faith-Based Investing and Corporate Engagement for the Presbyterian Church (U.S.A.), added: “This is a big step for AIG, and we look forward to continuing to work with the company as it outlines plans for meeting its rigorous and necessary climate targets.”
Illian noted that AIG’s agreement to issue a plan to combat climate change is another example of the power of collective investor action. “When we work together, we can effect real change,” he said. “And UCF will continue in our mission of investing together for a sustainable world.