Allianz outlines comprehensive net-zero transition plan
Allianz outlines comprehensive net-zero transition plan | Insurance Business Canada
Environmental
Allianz outlines comprehensive net-zero transition plan
Insurer unveils commitments to hit by 2030
Environmental
By
Kenneth Araullo
Allianz has released its comprehensive net-zero transition plan, reaffirming its commitment to achieving net-zero emissions by 2050 within its investment and property and casualty underwriting portfolios and by 2030 in its own operations.
This plan outlines specific intermediate targets for 2030, focusing on reducing greenhouse gas (GHG) emissions across Allianz’s business operations, investment portfolio, and P&C insurance business.
Additionally, Allianz announced its goals, which are to strengthen its engagement with customers and investee companies in their journey towards net-zero emissions, expand investments in renewable energy, low-carbon technology, and sustainable mobility, and advocate for climate action alongside partners, the financial services sector, other industries, and policymakers.
Key elements of the Allianz transition plan include a commitment to achieve 150% profitable growth in revenues from renewable energy and low-carbon technology solutions in the commercial insurance segment by 2030 compared to 2022. Allianz plans to provide coverage for emerging hydrogen technologies and invest an additional €20 billion in climate and cleantech solutions to align with EU sustainability regulations.
Net-zero targets for investments, businesses, and operations
For Allianz’s corporate insurance business, which includes large company customers reporting GHG emissions, the company aims to reduce emission intensity by 45% by 2030. In retail motor insurance, Allianz targets a 30% reduction in carbon emissions in nine key European markets by 2030 compared to 2022.
Allianz’s commitment also extends to its investment portfolio, with targets to reduce absolute owned emissions by 50% compared to the 2019 baseline for listed equity and corporate bonds by the end of this decade. All directly held real estate assets and joint ventures will align with the 1.5°C pathway, and GHG emissions from investments in corporates (both listed and non-listed) will be reduced by 50% compared to 2019.
The plan also emphasizes emissions reduction in high-emitting sectors such as electricity utilities, oil and gas, steel, and automobiles, achieved through active engagement with companies and sector-wide initiatives.
Allianz underscored its commitment to achieving net-zero emissions in its operations across 70 countries by 2030. Measures include reducing climate gases per employee by 70% compared to 2019, transitioning to 100% green electricity from 2023, and adopting a fully electric corporate car fleet over time.
Allianz also touted its net-zero plan as a reflection of its determination to drive transparency, trust, and lead by example in the journey toward full decarbonization of its insurance and investment portfolios by 2050. Annual progress reports will provide updates on Allianz’s environmental goals.
“With extreme weather events, this summer has reinforced the urgency to act on climate change,” Allianz CEO Oliver Bäte said. “Governments, businesses and individuals must work together to build resilience and limit global warming to 1.5°C. Therefore, at Allianz, we are committed to delivering on our own net-zero targets, as well as partnering with our clients and investee companies in their transition. We believe our intermediate targets will help us realize our growth potential and contribute to a healthier, more secure future for everyone.”
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