Allianz sets out net-zero transition plan

Allianz has set out its first net-zero transition plan, aiming to achieve net-zero emissions by 2050 in its proprietary investment and P&C underwriting portfolios and by 2030 within its own operations. It also sets out 2030 intermediate targets for core business segments such as property & casualty (P&C) and retail motor.

“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 insurer said.

The Allianz 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.

“These efforts are projected to contribute significantly to a targeted emission intensity reduction of 45% across multiple lines of Allianz’s corporate insurance business, consisting of large company customers that already report their greenhouse gas (GHG) emissions. For the retail motor insurance portfolio, Allianz targets a reduction of carbon emissions by 30% in nine key European markets by 2030 (Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Switzerland, UK),” said the insurer.

Allianz explained that while these 2030 intermediate targets are the first ones set for the Allianz P&C insurance portfolio, the insurer has already surpassed previously-set 2025 intermediate targets for its proprietary investment portfolio. It said the new goal halves emissions by 2030 compared with 2019, with a dedicated focus on actively driving emission reductions in energy, steel and automobile sectors.

Oliver Bäte, chief executive officer of Allianz, said: “With extreme weather events, this summer has reinforced the urgency to act on climate change. 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 realise our growth potential and contribute to a healthier, more secure future for everyone.”

The insurer said it 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.”

Günther Thallinger, member of the board of management Allianz SE, investment management, sustainability, said: “We are setting tangible targets to build transparency and trust and lead by example. Our comprehensive transition plan underpins our commitment to changing our own business and to encourage as well as support our customers and partners in their transition journeys. We are taking the necessary steps towards the full decarbonisation of our insurance and investment portfolios by 2050.”

Allianz said decarbonisation targets for the P&C commercial insurance portfolio refer to GHG emissions from businesses insured by various Allianz entities, such as Allianz Commercial. Allianz said it aims to reduce the emission intensity of this sub-portfolio by 45% by 2030.

“Emission intensity shows the amount of client-generated emissions associated with every million euros of premium and allows for dynamic measurement of emission reduction in line with a growing portfolio,” it said. This will involve the gradual phase-out of coal-based business models by 2040, expansion of renewable energy and low-carbon technology insurance as part of the overall Allianz Commercial portfolio, and committing to engagement with corporate customers in order to encourage action on the net-zero transition.

On the retail motor side, Allianz said: “We are encouraged to see more Allianz customers consider switching to low-emission vehicles. Hence, we are focusing on expanding our range of products and services in electromobility and multi-modal mobility. In addition, we use our influence to advocate for low-emission mobility and advise customers on eco-friendly driving behaviour, electric vehicles and charging infrastructure, and other forms of multi-modal mobility.”