IAG chairman Elizabeth Bryan says concerns over the impact of climate change on Australians “go to the heart of our business as an insurer”.
IAG has overrun its provisioning for natural disasters 11 times in the past 14 years has set aside $641 million this financial year to cover such payouts.
“We see first-hand the devastating impact that a changing climate has on our customers, and on our communities,” Ms Bryan told IAG’s annual general meeting in Sydney on Friday.
Ms Bryan said the insurance giant has reduced the carbon footprint of its investment portfolio by 60 per cent in two years, no longer invests in thermal coal companies, and committed to ceasing any residual underwriting of fossil fuel extraction or use by 2023.
Shareholders will vote at the meeting on special resolutions including that IAG set targets to further reduce investment in coal, oil and gas consistent with keeping the increase in global temperatures to less than 1.5C above pre-industrial levels.
IAG has recommended shareholders vote against the resolutions.