3 June 2022
- Allianz’s 21st Sustainability Report showcases climate strategy performance
- Allianz Group introduces guidelines for oil and gas business to accelerate the decarbonisation of energy sector
- Allianz’s global business operations to be net-zero by as early as 2030
Ahead of World Environment Day on 5 June 2022, Allianz Australia is proud to reaffirm its commitment to being a leader in sustainable business practices for the insurance industry and beyond, with the recent launch of the latest Allianz Group 2021 Sustainability Report. Allianz’s 21st Sustainability Report shows the continued progress of the Group towards tackling pressing challenges such as climate change, inequality, and exclusion. In addition, Allianz has announced new investment and underwriting commitments for oil and gas as part of its broader net-zero strategy.
Progress in meeting climate milestones
The Sustainability Report outlines Allianz’s 2021 strategy, ambition, commitments and contributions to shape a more sustainable future. Allianz, including in Australia, has ambitious climate targets: in 2021, we reduced GHG emissions per employee and increased our use of renewable energy. The reduction in GHG emissions was mainly driven by lower energy use and low business travel, including impacts from COVID-19.
Richard Feledy, Managing Director of Allianz Australia, said: “At Allianz, our purpose is to help secure the future for our customers, employees and the community. As part of this, we’ve had a climate strategy in place for more than a decade. As a global organisation we are working hard to not just meet, but accelerate, our climate targets. We are committed to continuing this momentum and working with the wider finance and insurance industries – both in Australia and overseas – to drive positive change”.
Addressing the reduction of GHG emissions from oil and gas
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 Arctic1 and the Antarctic, 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 scopes2. 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.
Reinforcing the commitment to net-zero
Allianz is accelerating the deployment of its climate strategy and recently announced new commitments in both its core business and operations. The company will limit the GHG emissions from Allianz’s sites and activities in over 70 markets to net-zero in its operations by as early as 2030.
Working towards this, in December 2021 Allianz Australia became the first insurer to join Climate League 2030, a ten-year, private sector-focused initiative to support and act towards a goal of reducing Australia’s annual greenhouse gas emissions.
For more information on Allianz’s global sustainability strategy and achievements, please see the Allianz 2021 Sustainability Report (PDF, 4.82 MB). For more information on how Allianz is accelerating the deployment of its climate strategy globally, please see the latest media release.
For more information on Allianz's local initiatives to mitigate and manage the effects of climate change by reducing our environmental impact, please visit https://www.allianz.com.au/about-us/community/healthy-planet/.
Allianz Media Team // firstname.lastname@example.org
Notes to Editors
The oil and gas guideline in detail:
- As of January 1, 2023, Allianz will not issue new single-site and stand-alone P&C insurance coverages (plus not renew existing contracts as of July 1, 2023) and will not provide new funding for projects in
As of January 1, 2025, we 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.
As of January 1, 2025, we will tighten our oil sands approach and provide no insurance, facultative reinsurance or funding for companies with more than 10 per cent (previously 20 per cent) of revenue from oil sands across all lines of business.
Allianz will continue to support ring-fenced and stand-alone construction and operational insurance of, as well as project investments in green and low-carbon energy (including on/offshore wind, solar, green hydrogen and blue hydrogen, if lifecycle emissions of those projects are verified to be similar to green hydrogen) to facilitate the rapid deployment of these technologies.
- exploration and development of new oil and new gas fields3 (upstream)
- construction of new midstream infrastructure related to oil,
- construction of new oil power plants,
- practices relating to the Arctic (as defined by AMAP, excluding operations in Norwegian territories) and Antarctic, coal-bed methane, extra-heavy oil and oil sands, as well as ultra-deep sea. This pertains to both new and existing projects/operations.
1 As defined by AMAP13, excluding operations in Norwegian territories.
2 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.
3 In special cases the Group Sustainability Board can decide on exceptions on new upstream gas fields in case a government decides on the development of a new gas field for energy security emergency reasons. This rule will be reviewed annually.