Kathmandu. Allianz SE, one of the world’s leading insurance and wealth management companies, has taken a major step forward in addressing climate change.
Its first net-zero transition plan, released in September 2023, sets clear and measurable targets by 2030. The company has pledged to achieve net-zero emissions across its investment and asset-liability (P&C) underwriting portfolio by 2050, and in its program, it aims to reach net-zero by 2030.
Allianz says greenhouse gas emissions will be reduced by 70% by 2030 compared to 2019. These include Scope 1, 2 and the relevant Scope 3 emissions. The goal is to use 100 per cent renewable electricity by 2023, reduce commercial travel emissions by 40 per cent by 2025 and make corporate car fleets fully electric by 2030. The rest of the emissions will be offset by high-quality carbon removal methods.
As of 2022, Allianz had assets under management of approximately €707 billion. This includes a 50 per cent reduction in emissions from listed stocks and corporate bonds by 2030 compared to 2019. Emissions concentrations from infrastructure and private equity investments will also be reduced by half.
The company also announced an additional 20 billion euros to invest in climate solutions by 2029. Renewable energy, electric transport and green building sectors will get priority.
The commercial insurance sector aims to reduce emissions intensity by 45 percent by 2030. Retail motor insurance will reduce carbon emissions in nine European countries by 30 percent. Special insurance and incentives will be provided to promote the use of electric vehicles.
“Our plan outlines a clear roadmap to meet our 2030 goals and sends a message of responsible leadership in the financial sector,” said Günther Thalinger, board member of Allianz. ’
Experts say that although this plan is big, information and policy support will play a major role in its implementation. Still, Allianz’s initiative sends a strong message on the path to sustainable change in the global insurance industry. –Agency
