The Allianz Group is significantly expanding its climate strategy by announcing an ambitious climate change protection plan. The plan will actively support the global initiative to change to a low-carbon economy over the coming decades.
If Allianz’s climate change protection plan is followed through, the insurer will have phased out its property investments in coal-based business by 2040.
Oliver Bäte, CEO of Allianz SE, explained that the group aims to be a partner in the long-term energy transition. “We are a very strong investor in infrastructure that includes innovative sources of low-carbon energy generation and distribution”, said Bäte. This initiative is another step to of the climate change protection plan.
Bäte stated that Allianz wants to promote the transition to a climate-friendly economy. Since “climate change generates enormous economic and social risks”, Allianz is implementing its climate change protection plan.
The items on the climate change protection plan
Allianz will start its climate protection plan by structuring its tradable investments in all carbon intensive sectors to be climate-neural.
As a result, the company will gradually stop insuring clients that fail to adjust their emissions to the two-degree target over the coming decades.
Similarly, Allianz will successively lower the threshold value in the energy sector for the maximum share of coal used by the emitters that it finances.
The goal is to reach a zero percent share by 2040 from the current thirty percent by lowering it gradually in five percent steps.
This part of the climate change protection plan includes the purchasing of a higher proportion of renewable energies in electricity.
This is because the company looks to ensure the integration of the two-degree target in all of the Allianz Group’s relevant business areas.
Allianz will also withdraw immediately from insuring single coal-fired power plants and coal mines in operation or planning.
Companies that generate electricity from multiple sources will continue to be insured, though they’ll be individually reviewed.
“We will actively inform our clients about the short-term implications and long-term strategic changes. We will work together closely with them to find suitable solutions that enable a joint path towards a low-carbon economy,” says Chris Fischer Hirs.
Hirs is the CEO of Allianz Global Corporate and Specialty, the global industrial insurer of the Allianz Group. This group will implement the new guidelines of the climate change protection plan as one of many Allianz entities worldwide.
With information form:
