Allianz announces net-zero transition plan

Written by Adam Cadle

08/09/2023

Allianz has announced its first net-zero transition plan, which substantiates the company’s long-term strategic climate commitment to achieve net-zero emissions by 2050 in its proprietary investment and P&C underwriting portfolios and already by 2030 within its own operations.

The company outlines concrete intermediate targets by 2030 to reduce GHG emissions in the Allianz’s own business operations, proprietary investment portfolio and P&C insurance business. Allianz will also strengthen its existing engagement activities with customers and investee companies on a joint net-zero transition journey and expand its targeted growth of renewable energy, low-carbon and further transition technology, and sustainable mobility in both the investment and insurance business. By delivering a transparent and tangible net-zero transition plan, Allianz aims to advocate climate action joining forces with customers and business partners, the financial services sector, and other industries, as well as policymakers and governments.

The transition plan includes a commitment to achieve 150% profitable growth in revenues from renewable energy and low-carbon technology solutions in the commercial insurance segment by 2030 versus 2022. Allianz is already a leading insurer of solar photovoltaic and wind farms, both onshore and offshore. Furthermore, it aims to provide coverage to the emerging hydrogen technologies. As an investor, Allianz plans to support the ramping up of renewable energy by investing an additional €20bn in climate and cleantech solutions in line with the EU sustainability regulation. This builds upon Allianz’s previous major investments in green energy infrastructure, including wind and solar farms, green hydrogen or green ammonia.

For the investments of policyholder funds, Allianz targets by the end of this decade to reduce absolute owned emissions by 50%, compared with the 2019 baseline for listed equity and corporate bonds. At the end of 2022, 36% have already been achieved, with the remaining to be materialised by end of 2029.

All directly held real estate assets and joint ventures invested by Allianz are to be in line with the scientifically based 1.5°C pathways in terms of total emissions. Additionally, the intensity of GHG emissions of investments in corporates (both listed and non-listed) are to be reduced by 50% compared to 2019.

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