Towards Net-Zero 2050

The ground was prepared last year. It’s now time to plant the seeds.

In September 2019, Allianz had joined forces with 11 other large institutional investors of the world to take a bold pledge: facilitate the decarbonization of the world economy, starting with making own portfolios carbon-neutral by 2050.

Since then, both the number of members of the Asset Owner Alliance (AOA) and their collective assets under management have doubled. The United Nations-convened alliance is now 30-strong, comprising insurers, pension funds, a state wealth fund and a foundation, controlling investments of about $5 trillion.

This month, the AOA set its first defined target for members – a reduction of 16-29 percent in greenhouse gas (GHG) emissions contained in own portfolios until 2025.

To facilitate transparency in the alliance’s efforts, its 2025 Target Setting Protocol  will be available until November 13, 2020 for comments from members of the general public, academia, government and business.

When the alliance was announced, many people might have had the question: why would an investor accept the target of net-zero emissions for an investment portfolio?

As an investor, it pays to listen to science and understand that there is enormous risk from climate change and its societal implications not only for the economy and businesses but also for assets in a portfolio.

This commitment reflects that understanding. Since the inception of the AOA, Allianz has been working on approaches that enable the group to steer the investments in its portfolios towards net zero. 

Dialog, not divide

In terms of how AOA plan to reach its targets, the alliance is clear that it wants to achieve a change in the economy and to have positive climate impact.

There are several aspects to this.

The members require inputs from scientists, climate models and scenarios to define the pathways for individual assets. For some assets that are directly owned, for instance real estate, the pathway is straightforward. The members can decide internally to retrofit or refurbish these assets to steer them to the path to net-zero emissions. However, with other assets such as publicly-listed companies, the way forward is reaching out to their leadership and discussing their approach to sustainability.

Wherever possible, the AOA recommends that its members use science-based targets and methodologies. The members are responsible for employing the recommended science-based criteria outlined in the protocol. If they chose an alternative target or methodology from the range of options discussed in the protocol, they should explain why.

The protocol has undergone testing by asset owners in their portfolios. Several alliance members will set large reduction targets, while others have already made substantial progress in their journey to net-zero in recent years. Therefore, the reductions required for their portfolios will be at the lower end of the range.

The new climate leadership in finance

United action

While the investment industry has a big role to play in the decarbonization of the economy, the support of other stakeholders cannot be emphasized enough.

The alliance continues dialogs with governments on GHG-reduction programs. Among the major discussion topics are the establishment of mandatory reporting on emissions for all companies and transparency on the true price of carbon.

A concerted action by governments, businesses and society will not only reduce the risks and costs of climate change but create tremendous economic opportunities.

The alliance gets stronger with each new member. Allianz invites all asset owners to join the AOA to bring about real change in the economy.

We all have a stake in sustainability. 

The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 746 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
** As of March 31, 2024.

Press contacts

Christiane Hach
Allianz SE
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:

Further information

Allianz spearheads Sustainable Investments with Net-Zero Asset Owner Alliance's comprehensive new protocol

The Net-Zero Asset Owner Alliance (NZAOA) is leading the financial industry towards a sustainable future. It has recently released the fourth edition of its Target-Setting Protocol, a comprehensive guide that outlines the pathway for investors to reduce portfolio emissions significantly by 2030, aligning with the 1.5°C ambition set forth in the Paris Agreement.

Dow Jones Sustainability Index recognizes Allianz as a Sustainable Insurer and underpins transition efforts – “It’s an incentive to continue our work!”

Allianz received a score of 82 (out of 100) in the 2023 Standard & Poor (S&P) Global Corporate Sustainability Assessment (CSA), underlying the Dow Jones Sustainability Index (DJSI), as of 24 November 2023. The results reflect Allianz's long-standing commitment to driving positive social and environmental change as well as building meaningful partnerships to shape a better, more sustainable future.

COP 28: EIB and AllianzGI announce new capital commitments to the Emerging Market Climate Action Fund (EMCAF)

New capital commitments from the United Kingdom and German governments. / The fund invests in green transition funds and projects in emerging and developing markets worldwide. / Launched at COP26, EMCAF has already invested more than $100 million in five funds over two years. / EMCAF on track to hold its third close at €385 million in the coming weeks. (Article links to external site)