Allianz sets climate targets for specific asset classes | Daily News

Allianz sets climate targets for specific asset classes

Munich: Allianz announces for the first time concrete interim targets for reducing greenhouse gas emissions in the investment of policyholder funds, implementing its stated goal of climate neutrality by 2050. By 2025, emissions for selected asset classes in the portfolio of customer funds are to be reduced by 25 per cent compared to 2019.

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. In addition, by 2025, all real estate investments by Allianz will be in line with scientifically based 1.5-degree pathways in terms of total emissions. Allianz will report on its progress annually, creating transparency for its customers and the public.

Allianz supports the shift to a climate-friendly economy with an ambitious sustainability approach for its business areas as well as operations. Over the next five years, the company will therefore also reduce climate gases from its operations by 30 per cent (compared to 2019). “With the 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,” explains 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 the opportunities offered by future-oriented business models.”The reduction of the investment’s environmental footprint is achieved in 5-year steps. 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 dialogue 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,” says Allianz SE CEO Oliver Bäte. “We will therefore intensify our partnerships with politics, business and civil society for a climate-friendly and socially just future.” Cross-industry and international partnerships are seen as important levers for tackling global challenges. Allianz also developed the methodologies underlying the reduction target together with partners in the UN-led Net-Zero Asset Owner Alliance (AOA) network. The Target Setting Protocol, published for consultation and now finalized, is based on the latest international climate research and is currently one of the most ambitious climate guidelines for investors. Currently 33 members strong, the AOA plans to continue to grow and further establish its climate protection standards in the financial industry.