Liberty Mutual Insurance has announced a new global policy on coal underwriting and investing.
Liberty Mutual said that it will:
- No longer accept underwriting risk for companies where more than 25 percent of their exposure arises from the extraction and/or production of energy from thermal coal.
- Not make new investments in debt or equity securities of companies that generate more than 25 percent of revenues from thermal coal mining or utility companies that generate more than 25 percent of their electricity production from thermal coal.
- Phase out coverage and investments for existing risks that exceed this threshold by 2023.
At the same time, Liberty Mutual named Francis Hyatt as its first chief sustainability officer.
"We are committed to being a responsible global corporate citizen with a focus on environmental sustainability, supporting the transition to a low-carbon economy and investing in companies that show proven progress in this evolution," said Mr. Hyatt. "We understand the shift from coal to clean energy is a journey and we recognize the role the insurance industry plays in supporting that evolution for our customers. Now more than ever it's crucial that companies take an active role in advancing their ESG agendas, and I look forward to partnering with internal and external stakeholders around the world to help drive positive impact in society."
Mr. Hyatt, who has held a variety of leadership roles during his 28-year career at Liberty Mutual, heads the company's Office of Sustainability and leads its global environmental, social, and governance ("ESG") initiatives.
Most recently, Mr. Hyatt served as executive vice president of enterprise talent practices, where he was responsible for the selection, development, training, and retention of talent across the organization. Among other things, he led the establishment of the company's first chief diversity and inclusion officer.
Mr. Hyatt is a member of the Boston College Center for Corporate Citizenship's Professional Services Sustainability Roundtable. He holds a J.D. from Suffolk University Law School and a bachelor's degree in business from Bentley University. Mr. Hyatt also serves on the board of directors of Boston Healthcare for the Homeless, Nobody's Children in Windham, New Hampshire, and is a member of the Massachusetts Bar.
Learn more: www.libertymutualinsurance.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].