100 companies say NO to Adani’s coal as Lloyd’s of London insurer Arch refuses to underwrite Carmichael project
Arch Capital Group has become the 100th company to rule out support for Adani’s controversial Carmichael coal project in central Queensland. Arch operates an insurance syndicate in the Lloyd’s of London insurance market, where Adani has been seeking insurance for its beleaguered coal mine and rail project.
After ten months of sustained pressure by climate campaigners from the #StopAdani movement Arch issued a statement committing to “not issue any insurance policies covering the Adani Carmichael coal mine”.
Adani Carmichael is the most controversial coal project in the world. The project will open up one of the world’s largest unexploited coal basins, trample the rights of First Nations people, threaten endangered wildlife and create up to 4.6 billion tonnes of carbon pollution. Major banks have refused to finance the project, forcing the Adani Group to self finance, 36 insurance companies have committed to not underwriting the project and engineering contractors, transport and construction companies have also refused involvement. A full list of companies who have ruled out Adani Carmichael is here.
Pablo Brait, spokesperson for Market Forces says: “One hundred major companies are now publicly refusing to work with Adani on its destructive Carmichael thermal coal mine. Carmichael has become a reputational disaster for the Adani Group and while it pursues this project it has zero credibility on climate. If Adani wants to continue to attract major investors and earn its place in the economy of the future then it must abandon its plans to expand the mining and burning of coal."
Claudia Lang, spokesperson for #StopAdani Moreland says: “The decision by Arch to not underwrite Adani’s coal comes after months and months of effort from concerned citizens who sent emails and messages, rallied online and on the streets and made hundreds of phone calls to Arch.
“The global insurance sector has an essential role to play in shaping our future by insuring projects that will sustain and support the health of our communities and our planet. The Adani coal project just doesn’t fit that criteria - given the billions of litres of precious ground water that the project would drain from drought-stricken Queensland and the insanity of opening up a huge new coal basin in the midst of a climate crisis. Our global movement will continue to work with every company at risk of supporting Adani, until Adani turns their back on this disastrous and unpopular coal project. We look forward to welcoming more companies to the growing list of 100 companies who have shown global leadership and said no to the Adani coal project.”
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Arch’s commitment follows a string of insurance companies publicly committing to not underwrite Adani’s giant coal project due to environmental concerns and reputational risk. Five insurers in the last two months have publicly ruled out support for Carmichael, including Lloyd’s heavyweights Hiscox and Tokio Marine Kiln, Brit and MS Amlin. With the ten largest Lloyd’s of London insurance syndicates all ruling out support, Adani is running out of options to secure critical insurance it will need to operate its coal project.
In total 36 major insurance companies have publicly ruled out insuring Adani’s coal project, including 26 Lloyd’s of London insurance syndicates.
In June 2020, Lloyd’s of London confirmed that some of its members are insuring Adani. Lloyd’s current marketwide policy allows its members to continue insurance of existing coal projects until 2030, despite the climate science. The Stop Adani campaign has been contacting Lloyd’s members one by one to rule them out and is now focused on a number of remaining members, including Ark, Markel, Hamilton Group, Lancashire, and WR Berkley.