Insurance group Allianz has pledged to reduce the emissions within its policyholder investment portfolios by 25% as it looks to drive sustainability.
It is the first time the underwriter has issued concrete interim targets for reducing greenhouse gas emissions in its investment portfolio of policyholder funds.
By 2025, emissions for selected asset classes in the portfolio of customer funds are to be reduced by 25 percent compared to 2019. It added in addition to traditional investment criteria, all equities as well as corporate bonds will in future be reviewed for their compatibility with the 1.5-degree target of the Paris climate agreement. By 2025, it pledged all real estate invested in by Allianz will be in line with scientifically based 1.5-degree pathways in terms of total emissions.
“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 SE 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.”
Allianz added over the next five years, the company will reduce climate gases from its operations by 30 percent, compared to its performance in 2019.
“The reduction of the portfolio carbon footprint is achieved in 5-year steps,” it added. “Ultimately, companies that match Allianz’s investment profile and follow a 1.5-degree path will increasingly be held in the portfolio. This is implemented, among other things, through active dialog with the companies and specifications of climate protection targets. Emissions are also reduced by expanding investments in climate-positive technologies and by refraining from investments in carbon intensive business models.”
“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,” added Oliver Bäte, Chairman of the Board of Allianz SE. “We will therefore intensify our partnerships with politics, business and civil society for a climate-friendly and socially just future.”