Allianz has been limiting insurance and investments in thermal coal-based business models since 2015 and aims to completely withdraw from the thermal coal sector by 2040. However, to limit global warming to 1.5°C, the global economy needs to move away from fossil fuels more quickly, according to latest scientific findings.
After targeting thermal coal as a key contributor to global GHG emissions, companies, governments and policyholders need to also act to reduce GHG emissions from oil and gas. Consequently, Allianz has decided to adjust its investment and underwriting strategy for the global oil and gas industry. From 1 January 2023, Allianz will stop investing and underwriting new single-site or stand-alone oil and selected gas projects. This restriction on underwriting and investment will apply to all oil and gas activities related to the Arctic and the Antarctic (as defined by AMAP13, excluding operations in Norwegian territories), as well as extra-heavy oil and in the ultra-deep sea.
As of January 1, 2025, Allianz will only insure and invest in those oil and gas companies which have committed to achieving net-zero greenhouse gas emissions by 2050 in alignment with science-based 1.5°C pathways, across all three greenhouse gas emission scopes. This applies to major oil and gas companies with above 60 million barrels of oil equivalent production in 2020 that are estimated to represent about 85 percent of the hydrocarbon production of the oil and gas industry combined. Additionally, the companies should ideally align their operations and disclosures with the Climate Action 100+ Net-Zero Company Benchmark requirements.
In contrast, the green energy projects of oil and gas companies will not be restricted in any way, and Allianz is committed to help drive the transition towards renewable energy sources through significant underwriting capacity and appetite for renewable energy risks.