Allianz reinforces its commitment to net-zero strategy
Allianz Group has shifted its goal to reach net zero from 2050 to 2030 and committed to no longer investing or underwriting in oil and certain gas risks.
The firm also said that it will require a robust ‘net zero by 2050’ commitment from the largest hydrocarbon producers before granting coverage or investment.
Günther Thallinger, member of the board of management of Allianz SE, Investment Management and Sustainability, said: “In view of the current geopolitical situation, the reliable energy supply for households and companies must be reprioritised 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. 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 decarbonisation of the economy.”
Allianz said it started limiting financing coal-based business models in 2015, followed by restrictions in insurance in 2018, and aims to completely withdraw from the coal segment by 2040. Consequently, and with careful consideration of the geopolitical developments, Allianz has decided to adjust its investment and underwriting strategy for the global oil and gas industry. The new guideline complements the existing Allianz ESG Integration Framework and its sensitive sector approach.
Christopher Townsend, member of the board of management Allianz SE Global Insurance Lines & Anglo Markets, Reinsurance, Middle East and Africa, said: “We are fully committed to supporting our clients with their transition plans to net-zero, until the changes come into effect in two years. The energy sector is currently undergoing a significant transformation, driven by technological innovations, that creates a tremendous business opportunity for new risk transfer solutions and services in the renewable energy space.”
In its operations and activities, Allianz is accelerating its goals to limit greenhouse gas (GHG) emissions from its sites and activities in over 70 markets to net-zero by 20 years to 2030, compared to its prior 2050 goal. The company is targeting net zero operations by 2030, including interim an goal to reduce its GHG emissions by 50% versus 2019 by 2025. Key initiatives highlighted by the company in order to reach its goals include sourcing 100% renewable electricity by 2023, shifting to a fully electric corporate car fleet by latest 2030, and reducing 40% of emissions deriving from travel activities by 2025.
Allianz introduced several new policies to guide its energy sector-related activities. In its Investment and Property & Casualty (P&C) business, the company said that starting next year, it will no longer provide insurance coverage or new funding for projects including exploration and development of new oil and new gas fields, construction of new midstream infrastructure related to oil or of new oil power plants, as well as to other new or existing projects including Arctic, Antarctic, coal-bed methane, extra-heavy oil and oil sands, and ultra-deep sea.
Additionally, Allianz said that beginning in 2025, the company will only insure and invest in large oil and gas companies with commitments to achieve net zero GHG emissions by 2050, aligned with science-based 1.5°C pathways, across all three greenhouse gas emission scopes. Allianz is also recommending that the companies align their operations and disclosures with the Climate Action 100+ Net-Zero Company Benchmark requirements.
The company added that green energy projects by oil and gas companies will not face any restrictions.
Allianz also stated that it will ask 100% of its suppliers to have a public commitment to net zero GHG emissions in line with 1.5°C path by 2025.
Barbara Karuth-Zelle, Member of the Board of Management of Allianz SE, Operations, said:
“For some years, we have already been using two important levers to reduce Allianz’s internal greenhouse gas emissions. First of all, our 155,000 employees are highly committed to reducing their personal carbon emissions and are sensitized by internal campaigns. Secondly, our facilities, IT and fleet management are focused on renewable energy use and the reduction of business travel, waste, electricity and water usage. Finally, we are activating another powerful lever by sharing ambitious emission targets with our suppliers. Working together as one ecosystem, we will expand our climate impact, taking a significant step towards net-zero.”
Read the press release and further details at the link below.