“The long era of robust economic growth, low inflation, and geopolitical stability is over, and it’s replaced by uncertainty, volatility, and war. Suddenly, fighting climate change has become an ever greater challenge,” suggests Allianz CEO Oliver Bäte.
Bäte’s comments stem from his speech at a summit of leaders from 34 governments along with 7 non-government bodies, including Californian governor Gavin Newsom, London mayor Sadiq Khan, the World Bank president, and the head of the UN’s Green Climate Fund.
Despite the ongoing difficulties, Bäte noted that it’s important to remember that “transforming our economy is a huge opportunity,” while the cost of not transforming “dwarfs the investments needed for the transformation.”
Outlining how to build a united and decarbonised society, he suggested that “we need to reach out to each other and build more collaboration.”
In this effort, Bäte said policymakers are essential. “We need to focus on pragmatic, market-based solutions that reflect scientific and economic realities, rather than imposing dogmatic and rigid policies that undermine confidence in leadership,” he explained.
Bäte continued, “Our belief in the power of collaboration, that led us to launch the UN-Convened Net Zero Asset Owner Alliance here in this building, is essential.
“Since its formation, as we just heard, we have grown to 86 members, including insurance companies, pension funds, foundations and endowments from all around the world, committed to moving our investment portfolios to net zero by 2050.
“Now, the problem is that 2050 is a long way off, and almost all of us in this room today who are responsible will not be in power by then.
“That is why we are asking our members to publish science-based intermediate targets within one year of joining, to keep the accountability with today’s decision-makers in the room.
“I am proud that the vast majority of the members have already set credible intermediate targets for 2025 or 2030, and not just 2050.”
Underlining some of the key aspects of the Allianz transition plan, Bäte said, “We will reduce emissions in our investment and underwriting portfolios, as well as in our own operations, and not by 2050, but much earlier.
“Our commitment is to grow the revenues in commercial and other insurance from renewable energies and low-carbon technologies by 2030 by 150%.
“We want to make sure we expand our investments in renewable energies by investing another €20 billion in climate and cleantech solutions in line with the EU’s Sustainability Regulation.”
