Insurance giant Allianz has announced it will pull the plug on investments in coal companies.

It will use the cash on funding wind energy projects instead.

CEO Oliver Bäte announced the firm will no longer invest in companies which derive more than 30% of their revenue from coal mining or generate more than 30% of their energy from coal.

Allianz is said to be the largest insurance company in the world and currently manages €2 trillion (£1.3tn) of assets.

As of September, more than 400 institutions managing $2.6 trillion (£1.7tn) made divestment commitments.

That’s according to environmental campaigning group 350.org.

It aims to send a signal to investors that the world is moving away from fossil fuels and towards renewable energy.

Europe campaigner for 350.org Nicolò Wojewoda said: “The global move away from fossil fuels and towards renewable energy is gathering pace in the lead up to the climate summit in Paris.

“More and more institutions ban investments in fossil fuels with Allianz being the biggest investor to join the movement yet.”