California Urges Complicated Coal Divestment

California Urges Complicated Coal Divestment By Tom Gray, Lauren Kline & Frank Nash - FactSet

Earlier this year, California's Insurance Commissioner Dave Jones requested that insurance companies in the state ramp down their investment in thermal coal. Under the proposal, California-based insurers with written premiums over $100 million nationwide (and those managing their assets) were asked to divest in any company that generated 30% or more of its revenue from the ownership, exploration, mining, or refinement of thermal coal. While the “Climate Risk Carbon Initiative” does not carry monetary penalties, insurance companies’ choice to comply (or not comply) was publicly announced on June 1.

Related: Assessing the Potential Impact of Coal Divestment in U.S. Equity Portfolios

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