Allianz has announced plans to eliminate its exposure to coal-fired generation by 2040 as part of a wider commitment to expand its climate strategy.
The German insurance giant said that it would immediately stop insuring single coal-fired power plants as a first move in a step-by-step process to phase out its proprietary investments in coal-based businesses and its insurance coverage of such assets by the 2040 deadline.
It has also set other climate targets, including reducing the carbon footprint of its business operations, and joining the Science Based Target Initiative as a commitment to the long term development of a carbon-free economy.
Allianz is one of several insurers and large financial institutions that have committed in recent months to reducing exposure to fossil fuel-based assets.
Italian insurer Assicurazioni Generali in February pledged to cut coal investments in a new climate change strategy.
“Climate change generates enormous economic and social risks. It is already harming millions of people today,” said the CEO of Allianz SE, Oliver Bäte. “As a leading insurer and investor, we want to promote the transition to a climate-friendly economy.”
“We are convinced that our approach will further improve the risk/return profile of our portfolio in the long term, and that we will strengthen our position as a forward-looking investor,” said Dr. Günther Thallinger, member of the Board of Management of Allianz SE. “As a long-term investor, we want to shape the change to a climate-friendly economy together with our clients. We will thus also strategically develop our investment opportunities in new technologies.”