Allianz aims for massive swing to renewables

In the latest indication by major carriers of their willingness to respond meaningfully to climate transition, Allianz has unveiled a commitment to achieve 150% profitable growth in revenues from renewable energy and low-carbon technology solutions in its commercial insurance segment by 2030 versus 2022.

Decarbonisation targets for the P&C commercial insurance portfolio refer to GHG emissions from businesses insured by various Allianz entities, such as Allianz Commercial. In this segment, starting with the high-impact sub-portfolio of large companies that already report their GHG emissions and are insured by Allianz Global Corporate & Specialty, Allianz said it aims to reduce the emission intensity of this sub-portfolio by 45% by 2030.

It added that this target is to be achieved through a set of activities, including:

  • Gradual phase-out of coal-based business models by 2040 will be continued in line with our Allianz’s statement on coal-based business models, supplemented by its adjusted underwriting approach for oil and gas companies introduced in April 2022.
  • Expansion of renewable energy and low-carbon technology insurance as part of the overall Allianz Commercial portfolio.
  • Committing to engagement with corporate customers in order to encourage action on the net-zero transition.

Allianz said its ambition is to reduce carbon emissions in nine key markets gradually by 30% by 2030, compared with 2022, with transportation, including private mobility, considered one of the most emission-intensive sectors. At the same time, it added, the market is developing very dynamically towards low-emission vehicles, electromobility, reduced mileage and intermodal transport.

The carrier claimed that it is already a leading insurer of solar photovoltaic and wind farms, both onshore and offshore. Furthermore, it said, it aims to provide coverage to the emerging hydrogen technologies:

“As an investor, Allianz plans to support the ramping up of renewable energy by investing an additional 20 billion euros in climate and cleantech solutions in line with the EU sustainability regulation. This builds upon Allianz’s previous major investments in green energy infrastructure, including wind and solar farms, green hydrogen or green ammonia.”

Commenting on the initiative, Oliver Bäte, CEO of Allianz said: “With extreme weather events, this summer has reinforced the urgency to act on climate change. Governments, businesses and individuals must work together to build resilience and limit global warming to 1.5°C. Therefore, at Allianz, we are committed to delivering on our own net-zero targets, as well as partnering with our clients and investee companies in their transition. We believe our intermediate targets will help us realise our growth potential and contribute to a healthier, more secure future for everyone.”