In May 2018, we joined the Science Based Targets initiative (SBTi), committing to set long-term climate goals for our operations and our proprietary investments in line with the Paris Climate Agreement’s target of limiting global warming to below 2°C. Over the coming decades, we plan to actively support the required global shift to a low-carbon economy. 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.
We pursue this goal with several approaches. We are identifying different methods to measure the carbon footprint of our entire proprietary investment portfolio and are using additional metrics to understand risks and opportunities related to decarbonization (see the Allianz France Sustainable Investment Report for a pilot portfolio footprint).
We have designed an engagement approach to create an impact in the real economy and encourage companies to define and implement climate strategies in line with science. By actively engaging with companies to have them set measurable climate targets (for example: through joining the SBTi) that are transparently pursued, we expect to not only reduce carbon emissions in our portfolio but also in the real world.
Additionally, we plan to join forces with other asset owners in encouraging companies to implement such pathways. Our participation in the Portfolio Decarbonization Coalition and Climate Action 100+ connects us with like-minded investors and offers platforms for collaborative engagement.
These are first steps and, going forward, we will continually expand these and develop new ones.
We tackled long-term risks in our proprietary equity and debt portfolio by deciding to divest from coal-based business models in 2015 and to strengthen our exclusion criteria in May 2018. The threshold for energy generation from coal and revenue generated from coal-mining will be lowered from 30 percent to 25 percent in 2022 (applicable to investments).
In May 2018, we also withdrew from insuring single coal-fired power plants and coal mines in operation or planning. We are committed to a full phase-out of all coal-based business models from our proprietary investments and Property & Casualty insurance portfolios by 2040.
We are supporting the global transition to clean energy by financing energy efficiency measures and innovation as well as renewable energy projects through fund and direct investments. In total, we have invested 5.6 billion euros1 in renewable energy projects, including 81 wind parks and seven solar farms. Our green bonds portfolio is growing, with investments currently standing at 2.5 billion euros1. Our investments in certified green buildings stand at 11 billion euros1.
Allianz has a long-established carbon reduction strategy to manage emissions from our own operations and we have committed to reduce carbon emissions by 30% per employee by 2020. By investing in projects such as forest protection in Kenya and Indonesia, we neutralize our remaining operational carbon emissions. Since 2012, Allianz has been a carbon-neutral company.
To support our commitment to a low-carbon economy – we are investigating priorities for low-carbon operations beyond 2020, including a more holistic role of renewable energy.
