On September 7, 2023, Allianz SE unveiled its first net-zero transition plan for its core business segments, featuring 2030 intermediate targets to achieve net-zero emissions by 2050. The Munich-based insurance firm’s intermediate goals focus on decarbonizing its proprietary investments and Property & Casualty (P&C) underwriting in the company’s commercial and motor retail businesses. While this is the first time Allianz has set 2030 goals, the firm reports that it has already surpassed its 2025 targets.
The plan’s 2030 decarbonization goals include:
- Portfolio reduction targets for proprietary investments, including the reduction of “absolute owned” emissions by 50%. In addition to the portfolio targets, the plan also prioritizes emission reduction targets for four high-emitting sectors: electricity utilities, oil and gas, steel, and automobiles.
- Reduction of client-generated emissions in Allianz’s P&C commercial insurance sub-portfolio of large companies that already report their emissions and are insured by the Allianz Global Corporate & Specialty division. The plan aims to reduce the emission intensity of the sub-portfolio by 45% by 2030 through a gradual phase-out of coal-based companies by 2040; expansion of renewable energy and low-carbon technology insurance; and encouraging corporate clients to transition to net-zero emissions.
- Reduction of carbon emissions by 30% in nine European markets of Allianz’s P&C retail insurance motor line of business—Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Switzerland and the United Kingdom—by expanding its range of electromobility and multi-modal mobility products and services; advocating for low-emission mobility; and advising customers on eco-friendly driving behavior, electronic vehicles and charging infrastructure.
- Continuing to focus on achieving net-zero emissions in Allianz’s operations in 70 countries through reduction of climate emissions per employee by 70%, purchasing 100% green electricity as of 2023 and shifting to a fully electric corporate car fleet over time.
Allianz’s plan further establishes a committee to achieve 150% growth in revenue from renewable energy and low-carbon technology in the commercial insurance segment by 2030. Allianz noted in a statement that it is a leading insurer of onshore and offshore solar photovoltaic and wind farms, and intends to offer coverage for emerging hydrogen technologies. The firm will also invest €20 billion in climate solutions in line with the EU’s green policy agenda.
Taking the Temperature: Allianz was one among several insurers in the spotlight earlier this year when it withdrew from the Net-Zero Insurance Alliance (NZIA), along with other insurers including Munich Re, Zurich and Hannover Re. As we reported, Munich Re cited “material antitrust risks” as the reason for withdrawing from the NZIA, likely referring to U.S. antitrust challenges to climate initiatives by, among others, Republican State Attorneys General.
Allianz’s climate action plan announcement comes as the insurance industry is grappling with business risks associated with climate change. We have reported on the findings in Goldman Sachs Asset Management’s 12th annual insurance survey, where just over one-third of insurance executives surveyed stated that climate change could also affect their ability to insure for extreme weather events. Likewise, an Allianz report cited as risks for carriers increasing climate-focused litigation against companies and their boards, noting that “the cumulative number of climate change-related litigation cases has more than doubled since 2015.” Particular types of cases cited included those asserting claims for greenwashing, failure to comply with international agreements such as the Paris Agreement, and claims based on companies making insufficient progress toward articulated sustainability targets.