Allianz has set interim targets to reduce greenhouse gas emissions in its investment portfolio, to help achieve its ultimate goal of climate neutrality by 2050.
The insurer said it wants emissions from equities and corporate bonds held in its customer funds portfolio to fall 25% by 2025, from 2019 levels.
The insurer said all equities and corporate bonds will be reviewed for compatibility with the Paris 1.5ºC climate agreement. Companies that also follow the agreement will “increasingly be held” in its portfolio, it explained.
In addition, the firm’s real estate investments will also be measured against the Paris climate agreement’s target.
Allianz will also reduce climate gases from its own operations by 30% in the next five years, compared to 2019, and only use green electricity in business operations by 2023.
“With change, we start with ourselves – to then support others to move towards carbon neutrality. We are convinced that integrating climate and sustainability aspects will have an impact on our investment strategy,” said Dr Günther Thallinger, member of the Allianz board of management responsible for investment management and ESG. “This allows us to mitigate climate-related risks and take advantage of opportunities offered by future-oriented business models,” he added.
Oliver Bäte, chairman of the board of Allianz, said: “The past year has clearly shown: markets and countries must learn to deal with new risks such as pandemics, climate change and social unrest. It is the most important task of the coming decade, to shape a sustainable economy and society.”
Allianz also announced Line Hestvik will lead the firm’s global sustainability work in the new role of chief sustainability officer. She will report directly into the board of management and roll out Allianz’s sustainability strategy across all markets.