Allianz aims for climate neutrality by 2050; plans to reduce assets’ climate impact by one quarter by 2025

Written by Adam Cadle

15/01/2021

Allianz has announced for the first time concrete interim targets for reducing greenhouse gas emissions in its investment portfolio of policyholder funds, implementing its stated goal of climate neutrality by 2050.

By 2025, emissions for selected asset classes in the portfolio of customer funds are to be reduced by 25% compared to 2019.

In addition to traditional investment criteria, all equities as well as corporate bonds will in future be reviewed for their compatibility with the 1.5-degree target of the Paris climate agreement. Furthermore, by 2025, all real estate invested in by Allianz will be in line with scientifically based 1.5-degree pathways in terms of total emissions. Allianz will report on its progress annually, creating transparency for its customers and the public.

Allianz supports the shift to a climate-friendly economy with an ambitious sustainability approach for its business segments as well as operations. Over the next five years, the company will therefore also reduce climate gases from its operations by 30% (compared to 2019).

"With change, we start with ourselves - to then support others to move towards carbon neutrality. We are convinced that integrating climate and sustainability aspects will have an impact on our investment strategy," Günther Thallinger, member of the Allianz SE board of management responsible for investment management and ESG, said.

"This allows us to mitigate climate-related risks and take advantage of opportunities offered by future-oriented business models."

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