Allianz affirms its commitment to the net-zero strategy
Allianz Group has announced new ambitious commitments in both its core business and operations. The company will limit the greenhouse gas emissions (GHG) deriving from Allianz's sites and activities in over 70 markets to net-zero by 2030, instead of 2050 as originally planned. Allianz has updated its investment and underwriting strategy for the global oil and gas industry.
Allianz Group is speeding up the implementation of its climate strategy and has made new, ambitious commitments in both its core business and operations. The company will reduce greenhouse gas emissions (GHG) from Allianz's sites and activities in over 70 markets to zero by 2030, rather than 2050 as previously planned. As of January 1, 2023, Allianz will no longer invest in or underwrite new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and Antarctic, or extra-heavy oil and ultra-deep sea risks for its proprietary Investment and Property & Casualty (P&C) businesses. Allianz will require a strong 'net-zero by 2050' commitment from the largest hydrocarbon producers as a precondition for company-level insurance coverage and investments by the beginning of 2025.
"In view of the current geopolitical situation, the reliable energy supply for households and companies must be reprioritized in the short term. Policymakers must now work together with the business community to define conditions that enable planning, and in addition enable the acceleration of renewables globally,"
says Günther Thallinger, Member of the Board of Management of Allianz SE, Investment Management and Sustainability.
"However, we should not lose sight of the serious consequences of climate change. With these new guidelines, Allianz is strengthening its promise to contribute to an orderly decarbonization of the economy."
Allianz is committed to actively driving the transition towards renewable energy sources, supported by significant underwriting and investment capacity and appetite for renewable risks. Consequently, green energy projects of oil and gas companies will not be restricted in any way.
Allianz began limiting financing for coal-based business models in 2015, followed by insurance restrictions in 2018, and plans to exit the coal segment entirely by 2040. To keep global warming to 1.5°C, the global economy must shift away from fossil fuels faster. The Intergovernmental Panel on Climate Change stated in a recently released report that global GHG emissions must be cut in half by 2030 compared to 2020 levels. Following the identification of thermal coal as a major contributor to GHG emissions, companies and governments must take action to reduce GHG emissions from oil and gas. As a result, and after careful consideration of geopolitical developments, Allianz has decided to revise its global oil and gas investment and underwriting strategy. The new guideline supplements Allianz's existing ESG Integration Framework and sensitive sector approach.
"With these new guidelines, Allianz is strengthening its promise to contribute to an orderly decarbonization of the economy."
Günther Thallinger, Member of the Board of Management, Allianz SE
Allianz has also accelerated its climate targets for its business operations, with plans to reduce GHG emissions by 50% by 2025 compared to 2019. To meet the net-zero target by 2030, the company intends to reduce emissions by 70% compared to 2019 by improving environmental management and sourcing 100% renewable electricity by 2023. The key drivers will be the transition to a fully electric corporate car fleet by 2030 and a 40% reduction in GHG emissions from travel activities by 2025. To address its remaining emissions, Allianz will employ high-quality removal solutions that promote high carbon removal performance.
"We are activating another powerful lever by sharing ambitious emission targets with our suppliers."
Barbara Karuth-Zelle, Member of the Board of Management, Allianz SE
Furthermore, Allianz will require 100% of its global suppliers to publicly commit to net-zero GHG emissions in accordance with the 1.5°C path by 2025. "For some years, we have already been using two important levers to reduce Allianz's internal greenhouse gas emissions," says Barbara Karuth-Zelle, Member of the Board of Management of Allianz SE, Operations. To begin with, our 155,000 employees are deeply committed to reducing their personal carbon footprints and are being educated through internal campaigns. Second, our facilities, information technology, and fleet management are focused on using renewable energy and reducing business travel, waste, electricity, and water usage. Finally, by sharing ambitious emission targets with our suppliers, we are activating another powerful lever. Working together as one ecosystem, we will reduce our climate impact and move closer to net-zero."
The Allianz Group today released its twenty-first Sustainability Report, which demonstrates the Group's continued progress in addressing pressing issues such as climate change, inequality, and exclusion. From creating a diverse workplace to reducing environmental impact and listening to customers, the company has further integrated sustainability into core business processes. Employee satisfaction with corporate culture (Inclusive Meritocracy Index) increased to 84 out of 100 points in 2021. (2020: 78). Customers also gave Allianz high marks in 2021: 78 percent of Allianz entities had a Net Promoter Score (NPS) that was higher than the market average or led in loyalty in their respective market.
Source: Allianz news