We help our clients effectively adapt to emerging sustainability and ESG risks and opportunities across all our lines of businesses.
Our sustainability solutions
Our Sustainability Solutions team is committed to supporting our customers in effectively adapting to emerging risks and opportunities across all our lines of business. Mindful of the rapidly evolving regulatory environment and changing customer needs, we aid our customers in driving their decarbonization journeys, as well as providing advisory services on measuring, mitigating and adapting to climate-related risks.
Resilience and adaptation as key driver of our climate approach
The risk from extreme events such as floods and wildfires is projected to increase with climate change, posing a significant challenge to society and hampering sustainable development. Beyond providing financial resilience via indemnity or parametric covers, the insurance industry has a key role to play in bolstering climate resilience and adaptation.
We are focused on supporting our customers in adjusting to these new risks, using physical and nature-based solutions, risk prediction tools and advisory services. We strive to actively collaborate with our customers to explore challenges such as the increasing number of high-intensity events, and build tools and services that minimize risks and meet customers’ needs.
At Allianz, we aim to enable the journey to net zero for our own operations, our investees, and our insurance customers. Our commitments are based on a series of long-term and intermediate targets across our operations and business in line with the 1.5°C ambition of the Paris Climate Agreement.
We care about driving the transition with you. We strive to provide the necessary solutions and support that will enable our clients to develop their climate adaptation capabilities and enhance resilience in the face of emerging risks. Collaboration will be key in tackling the challenges ahead, together.
We strongly believe that a net-zero future is possible. We are committed to limit global warming to 1.5°C in line with the Paris Climate Agreement and based on scientific scenarios to preserve our planet for future generations. As Allianz Commercial we aim to partner with our customers who set out on the net-zero transformation journey, implement a clear plan to diversify their businesses away from fossil fuels and scale renewable energy and low-carbon technology. A continuous dialogue, transparent communication, a recognition of the progress and a gradual step-by-step transition in partnership will lead the way.
Since 2018 we have been taking action in underwriting addressing high emitting sectors such as coal, oil and gas to achieve a real-world carbon reduction impact. In September 2023, Allianz published its inaugural net-zero transition plan with tangible 2030 intermediate targets to achieve net-zero emissions by 2050 in our proprietary investment and P&C underwriting portfolios.
What does this mean for our commercial insurance business?
We are committed to achieve a 150% growth in revenues from renewable energy, low-carbon technology and transition solutions by 2030 versus 2022. We are already a leading insurer of solar photovoltaic and on- and offshore windparks today and are eager to support e.g., evolving green hydrogen technologies. Our Sustainability solutions team works across all lines of business to realize innovative coverage and risk transfer solutions to help our clients adapt to increasing climate risk and to help expand renewable energy.
3 questions to our Chief Sustainability Officer
Watch the video with Gabrielle Durisch
Our Sustainability solutions team works across all lines of business to realize innovative coverage and risk transfer solutions to help our clients adapt to increasing climate risk and to help expand renewable energy.
> Coal-based businesses: We began redirecting our underwriting of coal-based business in 2018, and have since made significant adjustments to our coal policies. We don’t provide insurance for the construction or operation of single coal-fired plants and coal mines and are on track to phase out coal-based business models via further company restrictions across our insurance portfolio by 2040 at the latest.
> Oil & gas sector: As of January 1, 2023, Allianz no longer invests in or underwrites new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and Antarctic, or extra-heavy oil and ultra-deep-sea risks. By the start of 2025, we will require a robust ‘net-zero by 2050’ commitment from the largest hydrocarbon producers as a precondition for company-level insurance coverage and investments.
> Green energy and low-carbon technology: In the face of the current energy and climate crisis, renewable energy sources need to be deployed at scale and speed. We are a partner in the transition to a low-carbon economy, delivering products and services with a positive environmental or climate impact. We will help drive the growth of renewable energy providing significant capacity and innovative product solutions for wind and solar energy as well as for the emerging global hydrogen economy.
Shaping a sustainable future
Allianz Commercial is your partner in shaping a sustainable future. Our goal is to lead and empower you to tackle any ESG and sustainability risks. Watch the video to find out more.
Decarbonization of the shipping industry
Listen to Dr Funké Adeosun, Global Sustainability Solutions Practice Head, as she explores the critical role of insurance in the transition to a decarbonized world. She discusses insurance's unique position — not only in reducing its own carbon footprint, but also in enabling global decarbonization, particularly in the shipping industry and the transportation of low-carbon fuels.
Building Back Better, with you
Build Back Better is an approach to damage response which aims at enhancing the environmental value of whatever has been affected by a negative event. Practically speaking, it means that in the event of damage to any sort of property or asset, said property or asset will be either repaired in a more environmentally conscious way (e.g. by using less carbon intensive materials), or replaced altogether in a likewise manner.
