Allianz unveils sustainability plans

Allianz unveils sustainability plans | Insurance Business Australia

Allianz unveils sustainability plans

Allianz Group (Allianz or Group) has released its 21st sustainability report just in time for World Environment Day on June 5, 2022.

The Allianz Group 2021 Sustainability Report reaffirms Allianz's commitment to being a leader in sustainable business practices for the insurance industry. It shows the insurance giant's continued progress towards addressing pressing challenges – climate change, inequality, and exclusion – and outlines its strategy, ambition, commitments, and contributions to shape a more sustainable future.

Allianz, which has been limiting insurance and investments in thermal coal-based business models since 2015, plans to completely withdraw from the thermal coal sector by 2040. It has also adjusted its investment and underwriting strategy for the global oil and gas industry. Specifically, from January 1, 2023, Allianz will stop investing and underwriting new single-site and stand-alone oil and selected gas projects, with the restriction applying to all oil and gas activities related to the Arctic and the Antarctic, extra-heavy oil, and ultra-deep sea.

Additionally, as of January 1, 2025, Allianz will only insure and invest in oil and gas companies that have committed to achieving net-zero GHG emissions by 2050 (aligned with science-based 1.5°C pathways across all three GHG emission scopes) and aligning their operations and disclosures with the Climate Action 100+ Net-Zero Company Benchmark requirements.

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Allianz has been working with the rest of the insurance industry to build a sustainable future. Looking back on its sustainability milestones in 2021, the insurance giant reduced its greenhouse gas (GHG) emissions per employee and increased renewable energy ahead of its targets, mainly driven by lower energy use, more renewable electricity, low business travel, and the impacts of the COVID-19 pandemic.

During COP26 last year, the Insure Our Future campaign released its fifth scorecard on insurance, fossil fuels, and climate change and ranked 30 leading primary insurance companies on their policies towards insurance and investing in coal, oil, and gas – with Allianz Australia reaching the top of the list for ending fossil fuel insurance, third-best for ending fossil fuel investment, and second-best for other climate policies. In December 2021, Allianz Australia became the first insurer to join Climate League 2030, a 10-year private sector-focused initiative to support and act towards reducing Australia's annual GHG emissions.

Commenting on the insurance giant's sustainability commitment, Allianz Australia managing director Richard Feledy said: “At Allianz, our purpose is to help secure the future for our customers, employees, and the community. As part of this, we've had a climate strategy in place for more than a decade. As a global organisation, we are working hard to not just meet but [also] accelerate our climate targets. We are committed to continuing this momentum and working with the wider finance and insurance industries – both in Australia and overseas – to drive positive change.”