Allianz ups net zero ambitions with €20bn renewables injection

Insurance giant Allianz is significantly upping its net zero ambitions as it has altered its existing plans to reduce carbon emissions in the next 27 years.

Moreover, the company said it plans to invest an additional €20 billion into clean technology solutions, in order to "boost the development and implementation of renewable energy sources." 

The German firm said it is working to hit net zero in its proprietary investment and property and casualty underwriting portfolios by 2050. 

For the investments of its policy holder funds, Allianz plans to reduce half its carbon footprint by 20230. 

Moreover, Allianz, which is a member of the Net-Zero Asset Owner Alliance, plans to become entirely carbon-neutral within its entire internal operations within the next seven years.

In a bid to speed up the transition to cleaner energy, the industry giant said it will enhance its revenue from energy transition solutions in its commercial insurance portfolio by 150%. 

Günther Thallinger, the Allianz member of the board responsible for investment management and sustainability, said that "we are expanding growth in renewable energy, low-carbon technology, and sustainable mobility, in both our insurance business and investments, and strengthening our existing engagement on net zero efforts."

Allianz is, at present, one of the largest insurers for wind farms and solar parks. The plan sets out proposals to increase this exposure to emerging hydrogen technologies. 

Thallinger, who is the chair of the Net-Zero Asset Owner Alliance, stressed that Allianz' updated plan "shows how well transition to net zero greenhouse gas emissions in our commercial and motor property & casualty insurance business and proprietary investment portfolios, with intermediate emission reduction targets for 2030."

The industry veteran added that "it also shows how we will shift our own operations to net-zero emissions by 2030, specifically in our travel and fleet, procurement, facility management, and IT."

He said that his company "is setting tangible targets to build transparency and trust and lead by example. Our new transition plan underpins our commitment to changing our own business and to encourage as well as support our customers and partners in their transition journeys. 

"We are taking the necessary steps towards the full decarbonization of our insurance and investment portfolios by 2050,” Thallinger concluded. 

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