Analysing the quality of coal policies
The good, the bad and the in-between of the coal policies adopted by 300 major financial institutions
0%
of major financial institutions have adopted a coal policy.
0
major financial institutions have adopted commitments to stop financing thermal coal developers.
0%
of major financial institutions have not committed to exit thermal coal by 2030 in Europe/OECD and 2040 worldwide.
0
of the coal sector policies adopted by major financial institutions include commitments to limit financial support to the metallurgical coal industry.
Why track coal policies?
Science is clear. It is imperative to phase out of the coal sector in order to keep the 1.5°C within reach and avoid a climate breakdown.
Banks, insurers and investors are increasingly adopting decarbonization targets for the coal mining or power sector. Yet, these targets are on their own insufficient to achieve 1.5°C-aligned decarbonization. Financial institutions must adopt robust coal sector policies that end all financial services to the expansion of the coal industry while supporting its phase-out.
The Coal Policy Tracker is designed to track the commitments taken by top financial institutions worldwide, highlight the good practices, and shed light on the existing loopholes to be avoided.
The Coal Policy Tracker’s primary objective is simple: to ensure the financial sector is adopting effective coal policies to forcefully contribute to the 1.5°C climate goal. It also enables customers, media, financial institutions and other stakeholders to easily navigate the coal policy jungle.
Coal sector policies alone will not be sufficient to keep the 1.5°C within reach. Broader fossil fuel policies including oil and gas, along with robust sustainable commitments need to be taken by global financial institutions. Their assessments are available on the Oil and Gas Policy Tracker and the Sustainable Power Policy Tracker.
Use the tracker
Around 300 major financial institutions are assessed in the Coal Policy Tracker. Last policy update: June 2026.
This financial institution has one of the best practices in the sector.
This financial institution has informed Reclaim Finance that it is working on a new policy which is expected to be published soon.
NA The criterion does not apply to this type of financial institution.
Reclaim Finance could not give a definite score and has contacted the financial institution for clarification.
How to read the results?
The first criterion covers the exclusion of thermal coal mines, coal plants and coal infrastructure.
Grade PROJECTS 0 No exclusion of thermal coal mines and/or plants. 1 Very weak exclusion of new thermal coal mines and/or new coal plants (e.g., vague wording, large/geographical exceptions, etc.). 2 Exclusion of all new thermal coal mines. 3 Exclusion of all new coal plants but with major exceptions. 4 Exclusion of all new coal mines with no exceptions + very minimal exclusion of coal plants
OR
Exclusion of all new coal plants with minimal exceptions.
5 Exclusion of all new coal plants (no exceptions). 6 Exclusion of all new thermal coal mines and plants but with large exceptions (e.g., projects with CCS). 7 Exclusion of all new thermal coal mines and plants but with minimal exceptions. 8 Exclusion of all new thermal coal mines and plants, only CCS projects allowed. 9 Full exclusion of new thermal coal mines and plants, including life-extension retrofits. 10 Full exclusion of all thermal coal mines, plants and related infrastructure. BONUS / PENALTIES Penalty -1 when the policy does not cover all financial services dedicated to a specific project. Penalty -1 when the exclusion does not apply to captive projects (e.g., coal plants used for steel, aluminum or nickel production, etc., and not connected to the electrical grid). NEW > Penalty of -2 if the policy is not implemented immediately. Bonus +1 when the restrictions include an exception for the participation in the early phase-out of a coal asset, which must be clearly aligned with a 1.5° pathway and provide for the closure of an asset with finality. [only applicable if the FI has a score > 8 at the developers criterion]. Penalty -1 when the policy does not cover all financial services dedicated to a specific project. The second criterion addresses the exclusion of all financial services to companies planning new thermal coal mines, coal plants or coal infrastructure projects.
Grade EXPANSION 0 No restriction on financial services for companies with coal expansion plans. 1 No financial services only for new clients with thermal coal expansion plans. 2 No new financial services for existing clients but only some companies with thermal coal mining OR coal power expansion plans. 3 No new financial services in some companies planning or building new thermal coal mining AND coal power projects, weak restriction. 4 No new financial services for companies planning or building more than 1000 MW of new coal power capacity. 5 No new financial services for companies planning or building more than 500 MW of new coal power capacity. 6 No new financial services for companies planning or building more than 300 MW of new coal power capacity. 7 No new financial services for companies planning or building more than 100 MW of new coal power capacity. 8 No new financial services for companies planning or building any new thermal coal mine or power plant (≥100 MW). 9 No new financial services for companies planning or building any new thermal coal mine, plant (≥100 MW), or related infrastructure (rail, port, etc.). 10 No new financial services for companies planning or building any new thermal coal mine, plant (≥100 MW), or infrastructure, plus for companies acquiring existing coal assets without a clear closure plan, and companies supplying equipment for new coal projects. BONUS / PENALTIES Penalty of -1 or -2 when policy not applied to all financial services. Penalty of -2 when the exclusion does not cover financing subsidiaries and/or when financing to the parent company remains possible. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -1 if green bonds are not excluded. Penalty of -1 when the threshold for coal power developers is 300MW (and not 100 MW), applicable only for financial institutions with 8, 9 or 10 as a base score. Penalty of -1 when it only applies to utilities and not to companies planning coal captive projects for specific industrial uses (i.e., steel, chemicals, etc.). NEW > Penalty of -2 if the policy is not implemented immediately. Absolute coal power expansion plans figures can be identified in the Prorated coal power expansion plans column of the Global Coal Exit List. Penalties do not apply below score 1. The third criterion covers the exclusion of companies which are most exposed to the thermal coal sector, based on their share of revenues or electricity production from coal.
Grade RELATIVE THRESHOLD 0 No restriction on financing companies because of their relative exposure to thermal coal. 1 No financial services only for new clients. 2 No new financial services for existing clients but only for thermal coal mining OR coal power companies. 3 No new financial services for both thermal coal mining and coal power companies, weak restriction. 4 No new financial services for companies >50% coal share of revenues (CSR) / coal share of power production (CSPP). 5 No new financial services for companies >40% CSR/CSPP. 6 No new financial services for companies >30% CSR/CSPP. 7 No new financial services for companies >25% CSR/CSPP. 8 No new financial services for companies >20% CSR/CSPP. 9 No new financial services for companies >15% CSR/CSPP. 10 No new financial services for companies >10% CSR/CSPP. BONUS / PENALTIES Penalty of -1 or -2 when not applied to all financial services. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -2 when the exclusion does not cover financing subsidiaries and/or when financing to the parent company remains possible. Penalty -1 when wrong metric used for coal power from 20%: revenues and capacity instead of power generation. NEW > Penalty of -2 if the policy is not implemented immediately. The scoring grid goes above 10, applying the same logic (5%=11), to acknowledge exclusion thresholds which are more exigent than our 10% demand before the consideration of penalties, but the overall score is capped at 10. Only the 2 point penalty for policies only covering half or less of the assets is strictly applied to scores above 10. Penalties do not apply below score 1. The fourth criterion covers the exclusion of the largest thermal coal producers and largest coal plant operators.
Grade ABSOLUTE THRESHOLD 0 No restriction on financing companies because of their relative exposure to thermal coal. 1 No financial services only for new clients. 2 No new financial services for existing clients but only for thermal coal mining OR coal power companies. 3 No new financial services for clients for both thermal coal mining and coal power companies, weak restriction. 4 No new financial services for mining companies producing >50Mt thermal coal a year. 5 No new financial services for mining companies producing at least 20 Mt thermal coal a year ; or any lower exclusion threshold for mining companies but no exclusion of power companies. 6 No new financial services for mining companies > 20 Mt and some power companies based on some absolute criteria. 7 No new financial services for companies > 20 Mt and power companies > 15 GW*. 8 No new financial services for companies > 20 Mt and power companies > 10 GW*. 9 No new financial services for companies > 15 Mt and power companies > 5 GW*. 10 No new financial services for companies > 10 Mt and power companies > 5 GW*. BONUS / PENALTIES Penalty of -1 or -2 when not applied to all financial services. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -2 when the exclusion does not cover financing subsidiaries and / or when financing to the parent company remains possible. NEW > Penalty of -2 if the policy is not implemented immediately. Penalties do not apply below score 1. * Expressed in installed coal power capacity. The fifth criterion relates to the quality of the thermal coal phase-out strategy.
Grade PHASE-OUT 0 No corporate phase-out commitment or has announced its intention to phase out thermal coal for its financial services with no deadline for thermal coal mining and/or coal power. 1 Has announced a thermal coal mining OR power phase-out commitment for its financial services that will only be fully effective after 2030 in Europe/OECD countries, or after 2040 worldwide. OR Vague phase-out commitment. 2 Has announced a thermal coal mining AND power phase-out commitment for its financial services that will only be fully effective after 2030 in Europe/OECD countries, or after 2040 worldwide. OR Has announced a global thermal coal phase-out from its financial services by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining OR coal power. OR Has adopted very restrictive exclusion criteria that imply an almost immediate full thermal coal mining OR coal power phase-out for its financial services. 3 Has announced a global thermal coal phase-out for its financial services by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining AND coal power. 4 Has announced a global thermal coal phase-out for its financial services by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining and coal power, + Immediate exclusion of some coal developers from its financial services. 5 Has announced a global thermal coal phase-out for its financial services by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining and coal power, + Immediate exclusion of all thermal coal mining and power developers from its financial services. OR Has adopted very restrictive exclusion criteria that imply an almost immediate full thermal coal mining and coal power phase-out from its financial services. 6 Same as above + Request of an exit plan from clients benefiting from financial services. 7 Same as above + Immediate commitment to exclude companies with no exit plan aligned on the above deadlines, from financial services. 8 Same as above + Immediate commitment to exclude companies that fail to provide a detailed asset-by-asset exit plan covering most of the assets, from financial services. 9 Same as above + Demand to close (not sell) existing coal assets, + Commitment to exclude clients that plan to convert plants to gas and/or biomass from financial services. OR Has adopted a total exclusion criteria that imply an immediate full thermal coal phase-out from financial services, but no exclusion of all coal mine/plant developers. 10 Same as above + Exclusion if companies have a plan to sell (not close) their coal assets, and/or immediate commitment to exclude companies without a sustainable transition plan for workers, local communities, and the environment. OR Has adopted a total exclusion criteria that imply an immediate full thermal coal phase-out from financial services, along with immediate exclusion of all coal mine/plant developers. BONUS / PENALTIES Penalty -2 if the commitment only covers lending. Penalty -2 if financing for new projects is still possible. Penalty of -1 when the final exclusion threshold (in 2030/2040) is above 0%, or if there is uncertainty on the final threshold. Penalty -1 when exceptions are minimal, -2 when exceptions are significant. Some exceptions can be considered on a case by case basis for some early phase-out plans. Penalty of -1 if the demands (scores 7, 8, 9 and 10) will be effective after the given dates (2024, 2025 and 2026). Bonus +1 when an immediate exclusion threshold will be lowered overtime to reach below 5%. Penalties do not apply below score 1. *The threshold must be 300MW or lower. Bonus +1 when the restrictions include an exception for the participation in the early phase-out of a coal asset, which must be clearly aligned with a 1.5° pathway and provide for the closure of an asset with finality. [only applicable if the FI has a score > 8 at the developers criterion]. The sixth and seventh criteria cover the exclusion of metallurgical coal projects and of companies with metallurgical coal expansion plans.
Grade Projects (not applicable to investors) Expansion 
No policy No policy 
Partial exclusion of new metallurgical coal mines. Exclusion of some companies deriving revenues from metallurgical coal. 
Exclusion of new metallurgical coal mines. Weak exclusion of companies with metallurgical coal expansion plans. 
Exclusion of new metallurgical coal mines AND the expansion of existing metallurgical coal mines. Not immediate exclusion of companies with metallurgical coal expansion plans. 
Exclusion of new metallurgical coal mines AND the expansion of existing metallurgical coal mines
+ exclusion of metallurgical coal infrastructure.Exclusion of companies with metallurgical coal expansion plans.
The second criterion addresses the exclusion of all financial services to companies planning new thermal coal mines, coal plants or coal infrastructure projects.
Grade EXPANSION 0 No restriction on investments and no specific engagement for companies with coal expansion plans. 1 Engagement with companies with thermal coal expansion plans, but no restriction on investments. 2 No new investments or divestment of some companies with thermal coal mining OR coal power expansion plans. 3 No new investments or divestment of some companies planning or building new thermal coal mining AND coal power projects, weak restriction. 4 No new investments or divestment of companies planning or building more than 1000 MW of new coal capacity. 5 No new investments or divestment of companies planning or building more than 500 MW of new coal capacity. 6 For companies planning or building more than 300 MW of new coal capacity, no new investments AND systematic and strong sanctions, or divestment. * 7 For companies planning or building more than 100 MW of new coal capacity, no new investments AND systematic and strong sanctions, or divestment. * 8 For companies planning or building any new thermal coal mine or power plant (≥100 MW), no new investments AND systematic and strong sanctions, or divestment. * 9 For companies planning or building any new thermal coal mine, plant (≥100 MW), or infrastructure, no new investments AND systematic and strong sanctions, or divestment. * 10 For companies planning or building any new thermal coal mine, plant (≥100 MW), or infrastructure, and also for companies acquiring existing coal assets without clear commitment to close them and companies selling equipment for new coal projects, no new investments in AND systematic and strong sanctions, or divestment. * BONUS / PENALTIES Penalty of -1 or -2 when policy not applied to all assets. [For investors] Penalty of -1 when bonds are not sold or when it only concerns new investments Penalty -2 when the policy only covers new investments in shares. Penalty of -2 when the exclusion does not cover financing subsidiaries and/or when financing to the parent company remains possible. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -1 if green bonds are not excluded. Penalty of -1 when the threshold for coal power developers is 300MW (and not 100 MW), applicable only for financial institutions with 8, 9 or 10 as a base score. Penalty of -1 when it only applies to utilities and not to companies planning coal captive projects for specific industrial uses (i.e., steel, chemicals, etc.). NEW > Penalty of -2 if the policy is not implemented immediately. Absolute coal power expansion plans figures can be identified in the Prorated coal power expansion plans column of the Global Coal Exit List. Penalties do not apply below score 1. Remark
* In the assessment, sanctions taken by investors towards their investee companies are the systematic votes against strategic/management-proposed resolutions (the re-election of directors, against executive remuneration and against the distribution of dividends) at the Annual General Meetings of companies.The third criterion covers the exclusion of companies which are most exposed to the thermal coal sector, based on their share of revenues or electricity production from coal.Grade RELATIVE THRESHOLD 0 No restriction on investing and no specific engagement for companies because of their relative exposure to thermal coal. 1 Vague engagement practices with thermal coal companies, but no restriction on investments. 2 No new investments or divestment of companies with thermal coal mining OR coal power companies. 3 No new investments or divestment for both thermal coal mining and coal power companies, weak restriction. 4 No new investments or divesment of companies that derive >50% coal share of revenues (CSR) / coal share of power production (CSPP). 5 No new investments or divestment of companies >40% CSR/CSPP. 6 No new investments or divestment of companies >30% CSR/CSPP. 7 No new investments or divestment of companies >25% CSR/CSPP. 8 No new investments or divestment of companies >20% CSR/CSPP. 9 No new investments or divestment of companies >15% CSR/CSPP. 10 No new investments or divestment of companies >10% CSR/CSPP. BONUS / PENALTIES Penalty of -1 or -2 when not applied to all financial services. [For investors] Penalty of -1 when bonds are not sold or when policy only applies to new investments Penalty -2 when the policy only covers new investments in shares. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -2 when the exclusion does not cover financing subsidiaries and/or when financing to the parent company remains possible. Penalty -1 when wrong metric used for coal power from 20%: revenues and capacity instead of power generation. NEW > Penalty of -2 if the policy is not implemented immediately. The scoring grid goes above 10, applying the same logic (5%=11), to acknowledge exclusion thresholds which are more exigent than our 10% demand before the consideration of penalties, but the overall score is capped at 10. Only the 2 point penalty for policies only covering half or less of the assets is strictly applied to scores above 10. Penalties do not apply below score 1. The fourth criterion covers the exclusion of the largest thermal coal producers and largest coal plant operators.Grade ABSOLUTE THRESHOLD 0 No restriction on investing and no specific engagement for companies because of their relative exposure to thermal coal. 1 Vague engagement practices with thermal coal companies, but no restriction on investments. 2 No new investments or divestment of companies with thermal coal mining OR coal power companies. 3 No new investments or divestment for both thermal coal mining and coal power companies, weak restriction. 4 No new investments or divestment of mining companies producing >50Mt thermal coal a year. 5 No new investments or divestment for mining companies producing at least 20 Mt thermal coal a year ; or any lower exclusion threshold for mining companies but no exclusion of power companies. 6 No new investments or divestment of mining companies > 20 Mt and some power companies based on some absolute criteria. 7 No new investments or divestment of companies > 20 Mt and power companies > 15 GW*. 8 No new investments or divestment of companies > 20 Mt and power companies > 10 GW*. 9 No new investments or divestment of companies > 15 Mt and power companies > 5 GW*. 10 No new investments or divestment of companies > 10 Mt and power companies > 5 GW*. BONUS / PENALTIES Penalty of -1 or -2 when not applied to all financial services. [For investors] Penalty of -1 when bonds are not sold or when policy only applies to new investments. Penalty -2 when the policy only covers new investments in shares. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -2 when the exclusion does not cover financing subsidiaries and / or when financing to the parent company remains possible. NEW > Penalty of -2 if the policy is not implemented immediately. Penalties do not apply below score 1. * Expressed in installed coal power capacity. The fifth criterion relates to the quality of the thermal coal phase-out strategy.Grade PHASE-OUT 0 No corporate phase-out commitment or has announced its intention to phase out thermal coal with no deadline for thermal coal mining and/or coal power for its investments. 1 Has announced a thermal coal mining OR power phase-out commitment for its investments that will only be fully effective after 2030 in Europe/OECD countries, or after 2040 worldwide. OR Vague phase-out commitment. 2 Has announced a thermal coal mining AND power phase-out commitment for its investments that will only be fully effective after 2030 in Europe/OECD countries, or after 2040 worldwide. OR Has announced a global thermal coal phase-out from its investments by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining OR coal power. OR Has adopted very restrictive exclusion criteria that imply an almost immediate full thermal coal mining OR coal power phase-out for its investments. 3 Has announced a global thermal coal phase-out for its investments by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining AND coal power. 4 Has announced a global thermal coal phase-out for its investments by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining and coal power, + Immediate exclusion of some coal developers from its investments. 5 Has announced a global thermal coal phase-out for its investments by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining and coal power, + Immediate exclusion of all thermal coal mining and power developers from its investments. OR Has adopted very restrictive exclusion criteria that imply an almost immediate full thermal coal mining and coal power phase-out from its investments. 6 Same as above + Request of an exit plan from invested companies. 7 Same as above + Immediate commitment to exclude companies with no exit plan aligned on the above deadlines, from its investments. 8 Same as above + Immediate commitment to exclude companies that fail to provide a detailed asset-by-asset exit plan covering most of the assets, from its investments. 9 Same as above + Demand to close (not sell) existing coal assets, + Commitment to exclude companies that plan to convert plants to gas and/or biomass from its investments. OR Has adopted a total exclusion criteria that imply an immediate full thermal coal phase-out for its investments, but no exclusion of all coal mine/plant developers. 10 Same as above + Exclusion if companies have a plan to sell (not close) their coal assets, and/or immediate commitment to exclude companies without a sustainable transition plan for workers, local communities, and the environment. OR Has adopted a total exclusion criteria that imply an immediate full thermal coal phase-out for its investments, along with immediate exclusion of all coal mine/plant developers. BONUS / PENALTIES Penalty -2 if the commitment only covers lending. Penalty of -1 when the final exclusion threshold (in 2030/2040) is above 0%, or if there is uncertainty on the final threshold. Penalty -1 when exceptions are minimal, -2 when exceptions are significant. Some exceptions can be considered on a case by case basis for some early phase-out plans. Penalty of -1 if the demands (scores 7, 8, 9 and 10) will be effective after the given dates (2024, 2025 and 2026). Bonus +1 when an immediate exclusion threshold will be lowered overtime to reach below 5%. Penalties do not apply below score 1. *The threshold must be 300MW or lower. Bonus +1 when the restrictions include an exception for the participation in the early phase-out of a coal asset, which must be clearly aligned with a 1.5° pathway and provide for the closure of an asset with finality. [only applicable if the FI has a score > 8 at the developers criterion]. The sixth and seventh criteria cover the exclusion of metallurgical coal projects and of companies with metallurgical coal expansion plans.
Grade Projects (not applicable to investors) Expansion No policy No policy Partial exclusion of new metallurgical coal mines. Exclusion of some companies deriving revenues from metallurgical coal. Exclusion of new metallurgical coal mines. Weak exclusion of companies with metallurgical coal expansion plans. Exclusion of new metallurgical coal mines AND the expansion of existing metallurgical coal mines. Not immediate exclusion of companies with metallurgical coal expansion plans. Exclusion of new metallurgical coal mines AND the expansion of existing metallurgical coal mines
+ exclusion of metallurgical coal infrastructure.Exclusion of companies with metallurgical coal expansion plans.
The first criterion covers the exclusion of thermal coal mines, coal plants and coal infrastructure.
Grade PROJECTS 0 No exclusion of thermal coal mines and/or plants. 1 Very weak exclusion of insurance coverage for new thermal coal mines and/or new coal plants (e.g., vague wording, large/geographical exceptions, etc.). 2 Exclusion of insurance coverage for all new thermal coal mines. 3 Exclusion of insurance coverage for all new coal plants but with major exceptions. 4 Exclusion of insurance coverage for all new coal mineswith no exceptions + very minimal exclusion of coal plantsOR Exclusion of all new coal plants with minimal exceptions.5 Exclusion of insurance coverage for all new coal plants (no exceptions). 6 Exclusion of insurance coverage for all new thermal coal mines and plants but with large exceptions (e.g., projects with CCS). 7 Exclusion of insurance coverage for all new thermal coal mines and plants but with minimal exceptions. 8 Exclusion of insurance coverage for all new thermal coal mines and plants, only CCS projects allowed. 9 Full exclusion of insurance coverage for new thermal coal mines and plants, including life-extension retrofits. 10 Full exclusion of insurance coverage for all new thermal coal mines, plants and related infrastructure. BONUS / PENALTIES *For project-level exclusion, Reclaim Finance considers the following:– Engineering Lines (Construction All Risk – CAR, Erection All Risks EAR)Penalty -1 when the exclusion does not apply to captive projects (e.g., coal plants used for steel, aluminum or nickel production, etc., and not connected to the electrical grid). NEW > Penalty of -2 if the policy is not implemented immediately. Bonus +1 when the restrictions include an exception for the participation in the early phase-out of a coal asset, which must be clearly aligned with a 1.5° pathway and provide for the closure of an asset with finality. [only applicable if the FI has a score > 8 at the developers criterion]. Penalty -1 when the policy does not cover all financial services dedicated to a specific project. The second criterion addresses the exclusion of all financial services to companies planning new thermal coal mines, coal plants or coal infrastructure projects.
Grade EXPANSION 0 No restriction of insurance coverage for companies with coal expansion plans.1 No insurance coverage for new clients with thermal coal expansion plans. 2 No new insurance coverage for existing clients but only some companies with termal coal mining OR coal power expansion plans. 3 No new insurance coverage for some companies planning or building new thermal coal mining AND coal power projects, weak restriction. 4 No new insurance coverage for companies planning or building more than 1000 MW of new coal capacity. 5 No new insurance coverage for companies planning or building more than 500 MW of new coal capacity. 6 No new insurance coverage for companies planning or building more than 300 MW of new coal capacity. 7 No new insurance coverage for companies planning or building more than 100 MW of new coal capacity. 8 No new insurance coverage for companies planning or building any new thermal coal mine or power plant (≥100 MW). 9 No new insurance coverage for companies planning or building any new thermal coal mine, plant (≥100 MW), or infrastructure. 10 No new insurance coverage for companies planning or building any new thermal coal mine, plant (≥100 MW), or infrastructure, and for companies acquiring existing coal assets without closure plans or supplying equipment for new coal projects. BONUS / PENALTIES Penalty -1 when the policy does not apply to all the lines of business* of/all risks covered by the re/insurer. *By all lines of business, we refer to:- P&C (Property & Casualty)
- Engineering Lines (Construction All Risk – CAR)
- Surety bonds
Penalty -2 when, more than a year after coming into effect, contract renewals are still authorized by the policy. Penalty -1 when the restrictions do not apply to reinsurance treaties. Penalty of -2 when the exclusion does not cover financing subsidiaries and/or when financing to the parent company remains possible. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -1 if green bonds are not excluded. Penalty of -1 when the threshold for coal power developers is 300MW (and not 100 MW), applicable only for financial institutions with 8, 9 or 10 as a base score. Penalty of -1 when it only applies to utilities and not to companies planning coal captive projects for specific industrial uses (i.e., steel, chemicals, etc.). NEW > Penalty of -2 if the policy is not implemented immediately. Absolute coal power expansion plans figures can be identified in the Prorated coal power expansion plans column of the Global Coal Exit List. Penalties do not apply below score 1. The third criterion covers the exclusion of companies which are most exposed to the thermal coal sector, based on their share of revenues or electricity production from coal.
Grade RELATIVE THRESHOLD 0 No restriction on insurance coverage to companies because of their relative exposure to thermal coal. 1 No insurance coverage only for new clients. 2 No new insurance coverage for existing clients but only for thermal coal mining OR coal power companies. 3 No new insurance coverage for both thermal coal mining and coal power companies (no renewal), weak restriction. 4 No new insurance coverage for companies >50% coal share of revenues (CSR) / coal share of power production (CSPP). 5 No new insurance coverage for companies >40% CSR/CSPP. 6 No new insurance coverage for companies >30% CSR/CSPP. 7 No new insurance coverage for companies >25% CSR/CSPP. 8 No new insurance coverage for companies >20% CSR/CSPP. 9 No new insurance coverage for companies >15% CSR/CSPP. 10 No new insurance coverage for companies >10% CSR/CSPP. BONUS / PENALTIES Penalty -1 when the policy does not apply to all the lines of business* / all risks covered by the re/insurer. *By all lines of business, we refer to:- P&C (Property & Casualty)
- Engineering Lines (Construction All Risk – CAR)
- Surety bonds
Penalty -2 when, more than a year after coming into effect, contract renewals are still authorized by the policy. Penalty -1 when the restrictions do not apply to reinsurance treaties. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -2 when the exclusion does not cover financing subsidiaries and/or when financing to the parent company remains possible. Penalty -1 when wrong metric used for coal power from 20%: revenues and capacity instead of power generation. NEW > Penalty of -2 if the policy is not implemented immediately. The scoring grid goes above 10, applying the same logic (5%=11), to acknowledge exclusion thresholds which are more exigent than our 10% demand before the consideration of penalties, but the overall score is capped at 10. Only the 2 point penalty for policies only covering half or less of the assets is strictly applied to scores above 10. Penalties do not apply below score 1. The fourth criterion covers the exclusion of the largest thermal coal producers and largest coal plant operators.
Grade ABSOLUTE THRESHOLD 0 No restriction on providing insurance coverage to companies because of their relative exposure to thermal coal. 1 No insurance coverage only for new clients. 2 No new insurance coverage for existing clients (no renewal) but only for thermal coal mining OR coal power companies. 3 No new insurance coverage for risks for both thermal coal mining and coal power companies (no renewal), weak restriction. 4 No new insurance coverage for mining companies producing >50Mt thermal coal a year. 5 No new insurance coverage for mining companies producing at least 20 Mt thermal coal a year ; or any lower exclusion threshold for mining companies but no exclusion of power companies. 6 No new insurance coverage for mining companies > 20 Mt and some power companies based on some absolute criteria. 7 No new insurance coverage for companies > 20 Mt and power companies > 15 GW*. 8 No new insurance coverage for companies > 20 Mt and power companies > 10 GW*. 9 No new insurance coverage for companies > 15 Mt and power companies > 5 GW*. 10 No new insurance coverage for companies > 10 Mt and power companies > 5 GW*. BONUS / PENALTIES Penalty -1 when the policy does not apply to all the lines of business** / all risks covered by the re/insurer. **By all lines of business, we refer to:- P&C (Property & Casualty)
- Engineering Lines (Construction All Risk – CAR)
- Surety bonds
Penalty -2 when, more than a year after coming into effect, contract renewals are still authorized by the policy. Penalty -1 when the restrictions do not apply to reinsurance treaties. Penalty of -1 when minimal exceptions, -2 when large exceptions (e.g., geographical exceptions, financing allowed for vaguely-defined companies, etc.). Penalty of -2 when the exclusion does not cover financing subsidiaries and / or when financing to the parent company remains possible. NEW > Penalty of -2 if the policy is not implemented immediately. Penalties do not apply below score 1. * Expressed in installed coal power capacity. The fifth criterion relates to the quality of the thermal coal phase-out strategy.
Grade PHASE-OUT 0 No corporate phase-out commitment or has announced its intention to phase out thermal coal with no deadline for thermal coal mining and/or coal power from its insurance coverage. 1 Has announced a thermal coal mining OR power phase-out commitment for its insurance coverage that will only be fully effective after 2030 in Europe/OECD countries, or after 2040 worldwide OR Vague phase-out commitment. 2 Has announced a thermal coal mining AND power phase-out commitment for its insurance coverage that will only be fully effective after 2030 in Europe/OECD countries, or after 2040 worldwide. OR Has announced a global thermal coal phase-out from its insurance coverage by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining OR coal power OR Has adopted very restrictive exclusion criteria that imply an almost immediate full thermal coal mining OR coal power phase-out from its insurance coverage. 3 Has announced a global thermal coal phase-out from its insurance coverage by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining AND coal power. 4 Has announced a global thermal coal phase-out from its insurance coverage by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining and coal power, + Immediate exclusion of some coal developers from its insurance coverage. 5 Has announced a global thermal coal phase-out from its insurance coverage by 2040 with the intermediary date of 2030 for Europe/OECD for thermal coal mining and coal power, + Immediate exclusion of all thermal coal mining and power developers from its insurance coverage. OR Has adopted very restrictive exclusion criteria that imply an almost immediate full thermal coal mining and coal power phase-out from its insurance coverage. 6 Same as above + Request of an exit plan from insured clients. 7 Same as above + Immediate commitment to exclude companies with no exit plan aligned on the above deadlines, from its insurance coverage. 8 Same as above + Immediate commitment to exclude companies that fail to provide a detailed asset-by-asset exit plan covering most of the assets, from its insurance coverage. 9 Same as above + Demand to close (not sell) existing coal assets, + Commitment to exclude clients that plan to convert plants to gas and/or biomass from its insurance coverage. OR Has adopted a total exclusion criteria that imply an immediate full thermal coal phase-out from its insurance coverage, but no exclusion of all coal mine/plant developers. 10 Same as above + Exclusion if companies have a plan to sell (not close) their coal assets, and/or immediate commitment to exclude companies without a sustainable transition plan for workers, local communities, and the environment. OR Has adopted a total exclusion criteria that imply an immediate full thermal coal phase-out from its insurance coverage, along with immediate exclusion of all coal mine/plant developers. BONUS / PENALTIES Penalty of -1 if the commitment covers assets and not companies. Penalty -2 if insurance coverage of new projets is still possible. Penalty of -1 when the final exclusion threshold (in 2030/2040) is above 0%, or if there is uncertainty on the final threshold. Penalty -1 when exceptions are minimal, -2 when exceptions are significant. Some exceptions can be considered on a case by case basis for some early phase-out plans. Penalty of -1 if the demands (scores 7, 8, 9 and 10) will be effective after the given dates (2024, 2025 and 2026). Bonus +1 when an immediate exclusion threshold will be lowered overtime to reach below 5%. Penalties do not apply below score 1. *The threshold must be 300MW or lower. Bonus +1 when the restrictions include an exception for the participation in the early phase-out of a coal asset, which must be clearly aligned with a 1.5° pathway and provide for the closure of an asset with finality. [only applicable if the FI has a score > 8 at the developers criterion]. The sixth and seventh criteria cover the exclusion of metallurgical coal projects and of companies with metallurgical coal expansion plans.
Grade Projects (not applicable to investors) Expansion No policy No policy Partial exclusion of new metallurgical coal mines. Exclusion of some companies deriving revenues from metallurgical coal. Exclusion of new metallurgical coal mines. Weak exclusion of companies with metallurgical coal expansion plans. Exclusion of new metallurgical coal mines AND the expansion of existing metallurgical coal mines. Not immediate exclusion of companies with metallurgical coal expansion plans. Exclusion of new metallurgical coal mines AND the expansion of existing metallurgical coal mines
+ exclusion of metallurgical coal infrastructure.Exclusion of companies with metallurgical coal expansion plans.
