Investment and insurance firm AXA Group has announced it will sell off its €0.5 billion (£0.3bn) investment in coal companies.

AXA said it would stop investing in mining companies that derive more than 50% of their turnover from coal mining and electric utilities that source more than 50% of their energy from thermal coal plants as part of its new investment principles.

It has also committed to tripling its green investment, aiming to reach more than €3 billion (£1.89bn) by 2020.

Henri de Castries, Chairman and CEO of AXA said: “It is our responsibility, as a long term institutional investor, to consider carbon as a risk and to accompany the global energy transition. The burning of coal to produce energy is today clearly one of the biggest obstacles preventing us from reaching the 2°C target.

“Divesting from coal contributes both to not risk our investment portfolios and to build better alignment with AXA’s corporate responsibility strategy to build a stronger, safer and more sustainable society.”

This week the University of Edinburgh also cut links with coal and tar sands companies.