{"id":5557,"date":"2024-05-29T15:31:27","date_gmt":"2024-05-29T15:31:27","guid":{"rendered":"https:\/\/japan.insure-our-future.com\/?p=5557"},"modified":"2024-05-29T16:58:49","modified_gmt":"2024-05-29T16:58:49","slug":"what-is-the-role-of-insurance-companies-in-the-climate-crisis-a-case-study-of-sompos-involvement-in-the-rio-grande-lng-project","status":"publish","type":"post","link":"https:\/\/japan.insure-our-future.com\/en\/2024\/05\/29\/what-is-the-role-of-insurance-companies-in-the-climate-crisis-a-case-study-of-sompos-involvement-in-the-rio-grande-lng-project\/","title":{"rendered":"What is the role of insurance companies in the climate crisis? A case study of SOMPO\u2019s involvement in the Rio Grande LNG Project"},"content":{"rendered":"<h3><span style=\"font-weight: 400;\">Why do insurance companies matter in the climate crisis?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Customers pay premiums to insurers for protection and to secure the right to compensation for potential damages or losses to assets. For the insurer, the premiums are capital that can be reinvested in projects that generate profits, which allows them to pay customers\u2019 claims and make a profit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just like we insure our homes and cars, corporations operating fossil fuel facilities also need insurance. Due to its risks of accidents, large-scale constructions including the construction of fossil fuel facilities are typically required to have insurance to obtain permits from public authorities or secure financing from banks. By providing support for fossil fuel projects, insurers and banks are accelerating the climate crisis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This blog highlights the role of insurance companies in climate change, focusing on SOMPO\u2019s involvement in the Rio Grande LNG project as a case study.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is the Rio Grande LNG Project?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Rio Grande LNG is a Liquefied Natural Gas (LNG) export terminal under construction in southern Texas, USA. Several Japanese companies are involved in this project, including <\/span><a href=\"https:\/\/jacses.org\/en\/wp-content\/uploads\/2019\/10\/Rio-Grande-LNG-Fact-Sheet.pdf\"><span style=\"font-weight: 400;\">MUFG and Mizuho providing financing<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/investors.next-decade.com\/news-releases\/news-release-details\/nextdecade-and-itochu-corporation-execute-10-mtpa-lng-sale-and\/\"><span style=\"font-weight: 400;\">Itochu Corporation signing long-term LNG purchase agreements<\/span><\/a><span style=\"font-weight: 400;\">. If Rio Grande proceeds, the LNG produced will likely be imported to Japan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Local residents are concerned about this project because it could harm their health and environment, it violates Indigenous rights, and will worsen climate impacts.\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Impact on Climate Change from Greenhouse Gas Emissions<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">LNG has been touted as a \u2018cleaner\u2019 fossil fuel with lower greenhouse gas (GHG) emissions. However, studies reveal that LNG&#8217;s climate impact could be up to <\/span><a href=\"https:\/\/www.research.howarthlab.org\/publications\/Howarth_LNG_assessment_preprint_archived_2023-1103.pdf\"><span style=\"font-weight: 400;\">24 times greater than coal<\/span><\/a><span style=\"font-weight: 400;\">, taking into account its entire lifecycle from production to supply and transportation. Rio Grande LNG\u2019s annual CO2 emission is estimated to be <\/span><a href=\"https:\/\/www.theguardian.com\/environment\/2023\/feb\/03\/carbon-capture-gas-exports-rio-grande-lng-nextdecade#:~:text=And%20that%20impact%20could%20be,or%20more%20than%2035m%20cars\"><span style=\"font-weight: 400;\">163 million tons across its lifecycle<\/span><\/a><span style=\"font-weight: 400;\">, equivalent to the emissions from 44 coal-fired power plants.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">NextDecade, the operator of the project, claims that CO2 emissions can be <\/span><a href=\"https:\/\/www.next-decade.com\/rio-grande-lng\/\"><span style=\"font-weight: 400;\">reduced by 90%<\/span><\/a><span style=\"font-weight: 400;\"> in the gas cooling process via the use of Carbon Capture and Storage (CCS). However, it is said that emissions during the gas cooling process account for only <\/span><a href=\"https:\/\/www.netl.doe.gov\/energy-analysis\/details?id=9459c46c-bb24-44bc-be35-483cd660e862\"><span style=\"font-weight: 400;\">6-7% of the total lifecycle CO2 emissions<\/span><\/a><span style=\"font-weight: 400;\">. Therefore, the emissions mitigated by CCS are only a fraction of the total lifecycle emissions and the overall emissions of the project will significantly deter us from achieving global climate goals and staying below 1.5<\/span><span style=\"font-weight: 400;\">o<\/span><span style=\"font-weight: 400;\">C.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Violations of Indigenous Peoples&#8217; Rights<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The proposed Rio Grande LNG site is adjacent to the Garcia Pasture, a sacred site to the Carrizo\/Comecrudo Tribe.<\/span><\/p>\n<p><a href=\"https:\/\/capitalandmain.com\/the-transatlantic-battle-to-stop-methane-gas-exports-from-south-texas\"><span style=\"font-weight: 400;\">Juan Mancias<\/span><\/a><span style=\"font-weight: 400;\">, the chairman of the Tribe, is actively engaged in global campaigns to protect his people\u2019s sacred site from the proposed LNG facilities. He has traveled to Europe with fellow Indigenous leaders, advocating for customers and funders to stop supporting the construction of the Rio Grande LNG. According to local civil society groups, NextDecade has never held a consultation meeting with Indigenous Peoples on the Rio Grande LNG project and has not obtained the <\/span><a href=\"https:\/\/www.un.org\/development\/desa\/indigenouspeoples\/publications\/2016\/10\/free-prior-and-informed-consent-an-indigenous-peoples-right-and-a-good-practice-for-local-communities-fao\/\"><span style=\"font-weight: 400;\">Free, Prior, and Informed Consent (FPIC) required by the United Nations<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cLNG export terminals in the U.S. exploit Indigenous, Latino and Black communities, exacerbate the climate crisis and worsen air pollution in Europe.\u201d Indigenous communities propose that by speeding up the buildout of renewable energy sources, European governments can cut the need for importing LNG from Texas.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhen you steal the land, you\u2019re stealing us. And you\u2019re taking away our identity, because you fence it off and you don\u2019t allow us into the land where our ancestors are buried, where we remember our ceremonies and rituals.\u201d said Mancias in <\/span><a href=\"https:\/\/insideclimatenews.org\/news\/18102022\/indigenous-leaders-in-texas-target-global-banks-to-keep-lng-export-off-of-sacred-land-at-the-port-of-brownsville\/\"><span style=\"font-weight: 400;\">an interview<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">SOMPO&#8217;s Involvement in Rio Grande LNG<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In February 2024, a <a href=\"https:\/\/us.insure-our-future.com\/insurers-backing-methane-u-s-gulf-south\/\">report<\/a> by the Rainforest Action Network and Public Citizen revealed that one of major property and casualty insurers: SOMPO, as an underwriter of Rio Grande LNG. This information was obtained through Freedom Of Information Act requests.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since last year, Insure Our Future and local communities have been negotiating with SOMPO to stop underwriting Rio Grande LNG project. However, SOMPO has yet to announce its withdrawal from this project. We urge SOMPO to adopt a new fossil fuel policy including the following:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Commit not to renew the next contract with Rio Grande LNG,\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Introduce a conventional oil and gas policy, and<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Introduce a <\/span><a href=\"https:\/\/www.un.org\/development\/desa\/indigenouspeoples\/publications\/2016\/10\/free-prior-and-informed-consent-an-indigenous-peoples-right-and-a-good-practice-for-local-communities-fao\/\"><span style=\"font-weight: 400;\">FPIC<\/span><\/a><span style=\"font-weight: 400;\"> policy to make sure its clients protect the rights of Indigenous communities.<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400;\">What Can We Do?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">So, what can we do as individuals to stop the environmental destruction and human rights violations caused by the Rio Grande LNG project? The Rainforest Action Network currently has an <a href=\"https:\/\/act.ran.org\/page\/60534\/petition\/1\">online petition<\/a> to demand Rio Grande insurers, including SOMPO, not to renew the contract.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why do insurance companies matter in the climate crisis? Customers pay premiums to insurers for protection and to secure the right to compensation for potential damages or losses to assets. For the insurer, the premiums are capital that can be reinvested in projects that generate profits, which allows them to pay customers\u2019 claims and make &hellip;<\/p>\n","protected":false},"author":5,"featured_media":5555,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[89],"post_country":[106,100],"post_company":[102],"post_project":[173],"class_list":["post-5557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the role of insurance companies in the climate crisis? 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