Allianz to phase out coal-based business models in property and casualty insurance by 2040
Global insurer Allianz has unveiled a number of new guidelines for coal-based business models in property and casualty insurance and proprietary investments starting in 2023.
By 2040, Allianz intends to completely eliminate coal-based business models in property and casualty insurance, which is in line with scientific recommendations for a faster reduction in global greenhouse gas emissions over the course of of the next decade.
In this context, Allianz notes that mining companies that are planning new coal mines or generating more than 25% of income from coal mining or more than 10 million tons of coal per year, will no longer receive property and casualty insurance. and financing from January 1, 2023.
The same goes for energy companies that build new coal-fired power plants or generate more than 25% energy or five gigawatts per year from coal, alongside service providers who generate more than 25% of revenue. from coal.
For exclusively renewable companies, Allianz says business activities and investment opportunities will continue to be secured or funded if a comprehensive climate transition path is in place.
The insurer notes that since 2018, there have been no new coal projects in the portfolio of insureds’ funds. And, since 2015, Allianz has cut more than 6.3 million euros of investments in coal-based business models, the threshold here being lowered to 25% from 2023.
In addition, from July 1, 2021, the carrier will extend the existing exclusion of single-site insurance and investments from coal-fired power plants and mines in operation and under construction to corresponding infrastructure such as coal ports.
Line Hestvik, Chief Sustainability Officer at Allianz Group, said: âWe want to protect our customers from the increasing risks of climate change and at the same time chart the course for a sustainable economy today.
âOf course, this fundamental change can only be achieved gradually and with other stakeholders. That is why we will remain alongside our customers as a partner on their journey to a climate-friendly business for years to come. However, if companies do not develop a climate resilient strategy for the foreseeable future despite the regulatory and scientific framework, we will also step down as a last resort.
In addition to the broadening of the guidelines, Allianz has also released its 20th Sustainability Report, which reveals that the company is on track to meet its goals in its operations. Over the past decade, Allianz says per capita greenhouse gas emissions have fallen by around 62%.
In 2020, the share of renewable energies was 57% and it will be increased to 100% by the end of 2023.
The transporter has invested around 6.8 billion euros in 116 wind and solar farms. At the same time, investments in certified green buildings increased from â¬ 14.6 billion to â¬ 18.3 billion, while the volume of sustainable financial products in the investment portfolio increased by almost 10 billion euros to 39.3 billion euros.
In addition, Allianz Global and PIMCO have broadened their ESG approaches and invested more than 231 billion euros in sustainable projects and businesses.