In May 2018, we joined the Science Based Targets initiative (SBTi), and committed to set ourselves long-term emissions reduction targets for our proprietary investment portfolio and for our business operations in line with the Paris Climate Agreement. In 2019, we helped to set up the UN-convened Net-Zero Asset Owner Alliance (AOA), together with the Finance Initiative of United Nations Environment (UNEP FI), the Principles for Responsible Investment (PRI), WWF and the Mission 2020 campaign. Members of the AOA commit to reduce GHG emissions of their proprietary investment portfolios to net-zero by 2050, taking responsibility of their share in limiting global warming to 1.5°C compared to pre-industrial times.

We pursue this goal with several measures. 

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.

We are joining forces with other asset owners in encouraging companies to implement such pathways. Our participation in the Transition Pathway Initiative (TPI), Climate Action 100+ as well as the Principles for Responsible Investment (PRI), connects us with like-minded investors and offers platforms for collaborative engagement. The AOA strives to be the hinge between these existing engagement platforms, asset owners, target verification initiatives and tools, as well as policy-makers. 

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.

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 the latest. 

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 7.2 billion euros¹ in renewable energy projects, including 90 wind parks and nine solar farms. Our green bonds portfolio is growing, with investments currently standing at 5.6 billion euros¹. Our investments in certified green buildings stand at 14.6 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. A key strategic decision has been in 2018 to commit to use 100% renewable electricity by 2023 as part of joining the RE100 initiative.