Allianz Unveils €20 Billion Spending Target in Net-Zero Transition Plan

Allianz SE is planning to invest €20 billion ($21.4 billion) in renewable energy and low-carbon technology by 2030, as it unveils its first ever net zero transition plan.

The German insurance and asset management giant also plans to increase revenues from energy transition activities in its commercial insurance portfolio by 150% by the end of the decade, according to a statement on Thursday.

The goal forms part of a what Allianz said is its first “comprehensive” strategy for delivering on its commitment to achieve net zero emissions by 2050 in its proprietary investment and certain underwriting portfolios. A spokeswoman for Allianz said the firm hasn’t yet decided how to allocate the €20 billion.

Several years after announcing commitments to eliminate emissions, many of the world’s biggest insurers, banks and asset managers are under pressure to detail how they will deliver on those pledges. Transition plans, which are supposed to explain exactly how 30-year goals will be reached, are drawing increasing scrutiny from investors and regulators as the race to rein in global heating intensifies.

Allianz, which said its transition plan “substantiates” its long-term net zero goal, set intermediate targets to accelerate the reduction of emissions in its property and casualty insurance portfolios. By 2030, the company is targeting carbon emission reductions of 30% for its retail motor portfolio, as well as a 45% decline in greenhouse gas emission intensity in its commercial insurance segment.

For its investments on behalf of policyholders, Allianz said it’s targeting a 50% decline in absolute emissions by the end of the decade from a 2019 baseline. At the end of last year, the firm had already achieved a 36% decline in emissions for that portfolio, Allianz said.

–With assistance from Stephan Kahl.

Photograph: The offices of Allianz SE in the La Defense financial district of Paris, France, on Thursday, Oct. 7, 2021. Photo credit: Nathan Laine/Bloomberg