San Francisco May Be The First To Screen Insurers For Fossil Fuel Investments

Climate change isn’t just a hot political topic these days, it’s just hot in general now. There’s no question that the Earth is getting warmer, and many people are looking to distance themselves from entities that are only working to make it worse. What people? In this case, the city of San Francisco.

San Francisco is set to be the first U.S. municipality to implement rules designed to force insurance companies to stop investing in and insuring fossil fuels. The resolution, titled “Urging Divestment by Insurance Companies From Coal and Tar Sands Industries,” was introduced by Supervisor Aaron Peskin at the last San Francisco board meeting. The board voted unanimously in favor of it.

This resolution is timely in that it comes right as the city is preparing to host climate leaders from around the world at the Global Climate Action Summit, which is slated to take place in September. However, it’s unclear if any actual carriers doing business in the city will be affected by this new change.

The Sunrise Project is a strong supporter of this insurer screening and is working to implement it in more places. Ross Hammond, senior advisor with the Sunrise Project, spoke with the insurance journal about this saying that “We definitely have a plan to roll this out all over the United States over the next few months…It makes no sense for them to be investing in and underwriting the very industries which are causing accelerated climate change, which is increasing in the insurance claims that have to be paid out,”.

While San Francisco is set to be the first city to implement this insurer screening process,
it’s not unreasonable to conclude that many other U.S. cities will begin following suit if it goes well. Climate change is happening, and campaigns like these are likely to continue to grow in the future. This is certainly an area worth keeping track of.

Sources:
https://www.insurancejournal.com/news/national/2018/07/26/496064.htm