By joining the Science Based Target Initiative (SBTi), Allianz has set itself long-term goals for climate protection. In the future, the two-degree target of the Paris Climate Agreement will be integrated into the investment of insurance customers’ premiums. To this end, all tradable investments are to be structured climate-neutrally by 2050. In order to support this long-term transformation towards a low-carbon economy, Allianz is in active dialogue with companies to define and implement their own climate protection targets. The first step is being taken in four particularly energy-intensive sectors, including the transportation sector. In the energy sector of the portfolio, the threshold value for the maximum coal content will be lowered from 30 percent to 25 percent by 31 December 2022. The threshold refers to the revenue that mining companies generate by mining coal, or to the percentage of electricity generated from coal by energy companies. The measures continue Allianz's ESG scoring approach, which is currently applied to companies with high ESG risks.
Allianz is currently working with recognized climate experts, non-governmental organizations and committed companies within SBTi to develop marketable analysis tools for investors to integrate the two-degree target. Many companies are still unable to make precise statements about their greenhouse gas emissions or those of their supply chain due to a lack of data and procedures. "There is still a lot of pioneering work to be done. As a long-term investor, we need valid methods as quickly as possible to evaluate the climate strategies of invested companies. The adaptability of business models to the two-degree target will in future be a decisive selection criterion for our portfolio," explains Günther Thallinger. "It is important to limit global warming as quickly as possible – this will only succeed if business and politics pull in the same direction.”
With a view to achieving the two-degree target, Allianz also intends to significantly reduce
its own emissions in the long term. One of the next important measures is to purchase all electricity for the Allianz Group's business operations from renewable energy within the next few years.