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Allianz reinforces commitment to net zero

29th April 2022 - Author: Pete Carvill

Allianz Group has shifted its goal to reach net zero from 2050 to 2030 and committed to no longer investing or underwriting in oil and certain gas risks.

AllianzThe firm also said that it will require a robust ‘net zero by 2050’ commitment from the largest hydrocarbon producers before granting coverage or investment.

Günther Thallinger, member of the board of management of Allianz SE, Investment Management and Sustainability, said: “In view of the current geopolitical situation, the reliable energy supply for households and companies must be reprioritised in the short term. Policymakers must now work together with the business community to define conditions that enable planning, and in addition enable the acceleration of renewables globally. However, we should not lose sight of the serious consequences of climate change. With these new guidelines, Allianz is strengthening its promise to contribute to an orderly decarbonisation of the economy.”

Allianz said it started limiting financing coal-based business models in 2015, followed by restrictions in insurance in 2018, and aims to completely withdraw from the coal segment by 2040. Consequently, and with careful consideration of the geopolitical developments, Allianz has decided to adjust its investment and underwriting strategy for the global oil and gas industry. The new guideline complements the existing Allianz ESG Integration Framework and its sensitive sector approach.

Christopher Townsend, member of the board of management Allianz SE Global Insurance Lines & Anglo Markets, Reinsurance, Middle East and Africa, said: “We are fully committed to supporting our clients with their transition plans to net-zero, until the changes come into effect in two years. The energy sector is currently undergoing a significant transformation, driven by technological innovations, that creates a tremendous business opportunity for new risk transfer solutions and services in the renewable energy space.”

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