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For climate change, 2016 was a milestone year.
In November, the Paris Agreement entered into force and representatives of 195 countries discussed topics ranging from ways to cut industrial pollution to adapting coastlines to rising seas levels at the UNFCCC Conference of the Parties in Marrakesh, Morocco.
There were headwinds too.
The new political leadership in the United States has announced plans to dismantle environmental policies in the world’s largest economy and has questioned its Paris climate commitments.
Any conversation on sustainability is incomplete without a discussion on climate change. At Allianz, we have not only been actively participating in these conversations but also taking steps on a company level to do our bit.
A quick look at some of our initiatives...
In what is one of Allianz’s biggest sustainability initiatives, we set up the environmental, social and corporate governance (ESG) scoring framework for our investment portfolio to identify issuers that are sustainable. We score these companies and sovereigns on 37 parameters, including carbon emissions, energy efficiency, and environmental footprint.
Integrating ESG factors across business lines and investments not only benefits the environment and society; but has significant economic implications too. The ESG scoring system was developed jointly with non-governmental organizations Transparency International, World Wide Fund For Nature and Germanwatch. Complementing this approach, Allianz avoids certain investments. For example, controversial weapons, and investment in companies that generate over 30 percent of their revenue from coal mining or of their generated electricity from coal. "We do not believe that these investments make sense, either economically or from the perspective of sustainability," says Andreas Lindner, the Head Investor at Allianz Leben, the life insurance arm of Allianz in Germany which adopted ESG scoring in December.
Illustrated framework applies only to Allianz insurance and direct investment transactions and does not apply to third-party transactions and indirect investments. Indirect investments are covered by the ESG Scoring Approach.
As an insurer and asset manager, Allianz offers 152 products and services to offer both private and commercial customers to encourage environment-friendly and socially responsible practices. The solutions range from those for mobility and renewable energy to those for tackling issues related to weather, climate, efficiency and resource protection, and social inclusion.
Besides being good for the environment, renewable energy offers an attractive long-term investment opportunity. At the end of 2016, Allianz had 4.6 billion euro debt and equity investments in renewable energy. These include 70 wind farms and seven solar parks in France, Germany, Italy, Sweden, Austria, Finland, Spain, and the United States.
Our enthusiasm for the environment is shared by our asset management customers. Allianz Global Investors’ second closed-end renewable energy fund – the Allianz Renewable Energy Fund 2 (AREF2) - attracted almost 350 million euros from institutional investors, reflecting the potential the sector holds.
Fighting climate change is not all about work. It’s also about play! In February this year, we partnered with the FIA Formula E Championship, the world’s first fully-electric single-seater racing series. Allianz will also host the newly named Allianz eVillage, where fans can enjoy a fully immersive and interactive experience during each ePrix event.
Exciting as it sounds, the series holds a deeper meaning. Driving Allianz’s participation is an aim to revolutionize sustainable mobility, raise awareness about e-driving and stimulate innovation in the field.
“We believe that now is the time to engage in the development of new ecosystems, defining the future of urban mobility in a sustainable way,” says Jean-Marc Pailhol, Head of Group Market Management and Distribution at Allianz. “What better way than to partner with Formula E, which not only brings the discussion to metropolitan cities around the globe but also adds the excitement of fully electric racing.”
This year, Formula E will also feature a ‘Roborace’ series, which will feature autonomous, electric vehicles.
It’s not just individuals but also companies that stand to lose if the issue of climate change is not addressed. As a committed corporate citizen, Allianz intends to do all it takes to keep the conversation going.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer:
Dr. Saskia Juretzek
Phone: +49 89 3800 90593