Six European firms are either reducing their exposure to vessels that transport coal or are considering doing so
London — Shipping companies that transport the world’s coal are in the crosshairs of some financial backers who are cleaning up their businesses in the absence of a truly global drive by nations to renounce the dirtiest fossil fuel.
“There is much more pressure on the insurance companies in terms of ESG,” said Patrizia Kern-Ferretti, head of marine at Swiss Re Corporate Solutions, referring to the sustainable investment sphere. “I hear from brokers they are having difficulty placing coal policies in the insurance market,” she added. “More and more companies are applying direct guidelines.”
Andreas Sohmen-Pao, chairperson of BW Group, which operates a diverse fleet including oil and gas tankers, offshore vessels and dry bulk carriers, said ESG pressures on investors and banks — capital providers to the industry — were growing. “All we do is deliver it from the point of origin to the point of consumption, like a messenger delivering his message,” he added. “Coming after ship owners seems the easy cop-out route as we have no voice.”The six firms that spoke to Reuters about their coal concerns collectively own, finance, insure or reinsure more than $1bn of capital in the dry bulk industry, based on the estimated value of shipping assets.
“When it comes to small bulk carriers below Panamax size the amount of coal they carry is relatively modest and our experiences suggest that certainly now institutions would take the view that the relationship with coal is, from their perspective, de minimis,” said Marine Capital CEO Tony Foster. Monaco-based Eneti is in the former camp, and it has shifted entirely out of dry bulk shipping this year into providing specialist vessels for the offshore wind sector.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold on track for best week in six monthsSpot gold drops after rising to a five-month peak on Wednesday as US consumer prices soar
Read more »
DM168 HERITAGE: The evicted residents of District Six were robbed of the golden threads of communityIn Cape Town, the loss of community is what residents of an area known as District Six mourn, following their eviction in the 1970s. What was it they perceived they had? And what did they lose, following their removal to the Cape Flats? As former residents wait endlessly to return, these are questions worth asking.
Read more »
Lack of news on next Fed chair is introducing unpredictability for investorsMany are expecting that Fed chair Jerome Powell will be renominated for another four-year stint, but it’s not a done deal
Read more »
Mantashe and Ramaphosa differ on the just transition from coalPresident Cyril Ramaphosa called funding to speed up SA’s shift from fossil fuel reliance a watershed moment. A few days later Gwede Mantashe contradicted him.
Read more »
Richemont looks to save online fashion retailer by bringing in investorsIt is in advanced talks with online luxury fashion platform Farfetch
Read more »