In the investment of policyholder funds, Allianz will continuously reduce greenhouse gas emissions to net zero by 2050, reaching an interim target by 2025. Coal-based business models in investment and property and casualty insurance will be phased out by 2040. Allianz supports this long-term transformation, which affects all industries and markets, primarily through dialog and engagement with companies via international platforms/networks. Allianz will also apply gradual exclusions to particularly emissions-intensive business models, such as the extraction and use of thermal coal. Identifiable environmental and financial risks will thus be minimized in its portfolios in the medium term.
"We want to protect our customers from the increasing risks of climate change and at the same time set the course for a sustainable economy today," says Line Hestvik, Head of Sustainability at Allianz Group. "Of course, this fundamental change can only be achieved gradually and together with other stakeholders. That is why we will stand by our clients as a partner on their path to climate-friendly business in the coming years. However, if companies do not develop a resilient climate strategy in the foreseeable future despite the regulatory and scientific framework, we will also withdraw as a last resort."
As part of its climate strategy, Allianz has further increased its ambition for companies with carbon-based business activities in investment and property and casualty insurance. This is in line with scientific recommendations for a faster reduction of global greenhouse gas emissions over the next ten years. Key changes: Mining companies that plan new coal mines or generate more than 25 percent revenue from coal mining or more than 10 million tons of coal annually will no longer receive property and casualty insurance and financing beginning January 1, 2023. The same applies to energy companies that build new coal-fired power plants or generate more than 25 percent energy or more than five gigawatts annually from coal, as well as service providers that generate more than 25 percent revenue from coal. Business activities and investment opportunities of these companies that are exclusively renewable will continue to be insured or financed if an overall climate transition path is in place. There have already been no new coal projects in the portfolio of policyholder funds since 2018. Since 2015, Allianz has phased out over 6.3 million euros of investments in coal-based business models; the threshold here will also be reduced to 25 percent from 2023.
From July 1, 2021, Allianz will extend the existing exclusion of single site insurance and investments of coal-fired power plants and mines in operation and construction to corresponding infrastructure such as coal ports.
Allianz is also on track to reach its sustainability goals in its operations: over the past ten years, per capita greenhouse gas emissions have fallen by 62 percent. The share of renewable energy was 57 percent in 2020 and will be expanded to 100 percent by the end of 2023. The company supports an open corporate culture and flexible working models. Women are well-represented at Allianz, making up over 38 percent of managers and 42 percent of the talent pool. Employee satisfaction with the corporate culture (Inclusive Meritocracy Index) has risen to 78 out of 100 points. Customers also gave Allianz high marks last year: 79 percent of Allianz entities had a Net Promoter Score (NPS) greater than market average or loyalty leadership in the respective market (2019: 70 points).