Intermediate 2030 decarbonization targets
Allianz raises its climate ambitions further
Q: Günther, Allianz is implementing its 2025 targets and now setting 2030 intermediate targets in its objective to reach net-zero emissions by 2050. The 2030 targets are set for the company’s operations and insurance portfolio and in addition for proprietary investments. Why is this a priority?
Allianz wants to “secure your future”. This is our purpose. We want to secure a future on a planet which is worth living on.
We are witnessing a world in a state of climate crisis. Another summer’s devastating heatwaves, fires and floods have made this abundantly clear. We have a responsibility to protect our policyholder assets from risks, including climate change risks. At the same time, Allianz, with its business capabilities, can support economic transformations necessary to achieve net-zero, which is also a responsibility. In addition, it is also an opportunity to create new business and participate in the commencement of the economic innovation-cycle.
To not have a plan to address these risks and opportunities is not an option.
Q: How would you describe Allianz’s particular approach to climate action?
In a word, partnership. We aim to lead on climate action -- as evidenced in our intermediate 2030 targets and Net Zero Transition Plan. However, more importantly, we want to partner with governments globally, industry, corporates, and others in the financial sector to help them decarbonize. Targets and plans are set individually and unilaterally by each company; nonetheless, we must work together in unison to tackle climate change. Our approach is to partner, and work together on risk mitigation and economic transformation.
The implementation of measures coupled with the communication of target achievements (operational 2025 targets) and our conversation around the next phase (2030) allows for customers and partners to gain trust in our work and thus collaborate with us on climate change and sustainability.
Q: Let us look at the details: what is the Inaugural Net-Zero Transition Plan, what does it aim to achieve?
Q: How significant is this plan?
The Net-Zero Transition Plan is our blueprint for realizing the targets. It is based on recommendations of the U.N. High-Level Expert Group on Net-Zero Commitments of Non-State Actors and informed by credible industry-led approaches, such as the Target Setting Protocol of Net-Zero Asset Owner Alliance, named the “gold standard for credible commitments and transparent targets” by Secretary-General Antonio Guterres.
Our Net-Zero Transition Plan is significant on several levels. It is ambitious yet achievable while remaining transparent and specific, especially on setting intermediate targets and actions. The year 2050 sounds like a long way off. However, to substantiate commitments and build trust- you must set intermediate targets.
The plan reflects Allianz’s broad scope and impact as a global insurer, asset manager, investor, and employer. Our intent is to create a ripple effect through our actions on these targets and via our partnerships. In consideration, we serve 122 million customers in over 70 countries, from individual policyholders to small business owners, to governments and global players, you begin to see the catalytic impact Allianz can have to reverse global warming.
We hope to serve as a model for other large institutions. We want others to join us or, better yet, do even more.
Q: Can you provide concrete examples of what we aim to achieve? When looking back from the standpoint of 2030, what measurable targets will Allianz have met?
We strive for significant emission reductions across our property and casualty (P&C) insurance and investment portfolios. Our plan is projected to reduce greenhouse gas (GHG) emission intensity by 45% by 2030 in a critical segment of Allianz's corporate insurance portfolio. 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).
While these 2030 intermediate targets are the first set for the Allianz P&C insurance portfolio, Allianz has already surpassed our 2025 intermediate targets for our proprietary investment segment. We aim to halve emissions by 2030 compared to 2019, with a dedicated focus on actively driving emission reductions in the automobile, energy, and steel sectors.
Q: Is accelerating clean energy a particular focus for Allianz?
Yes, the energy sector holds the key to mitigating global warming. Partnering with our customers on energy is a priority. For example, we will engage with 20 million retail customers to support their transition to electric mobility. The transition plan also includes a commitment to achieve a 150% growth in revenues for renewable energy, low-carbon technology, and other transition solutions in the commercial insurance segment by 2030. Allianz is already a leading insurer of offshore and onshore wind farms as well as photovoltaic and aims to provide coverage for emerging hydrogen technologies.
As an investor, Allianz plans to support the ramping up of renewable energy by investing an additional 20 billion EUR in climate and cleantech solutions. Allianz is already a major investor in green energy infrastructure, including wind and solar farms, green hydrogen, and green ammonia.
In our operations, we seek to achieve net zero emissions in 70 countries by December 31, 2029. Over the next seven years, the company will reduce climate gases per employee by 70% (compared to 2019), accelerated by purchasing 100% green electricity in 2023 and shifting to green fleets by 2030. By 2025, we aim to have a global framework of vendors in our supply chain, all of whom have a public net-zero commitment.
