Allianz

RATING

SECTOR

Diversified Insurance

WEBSITE

CONTACT

Allianz SE

Group Communications and Corporate Responsibility

Koeniginstrasse 28 

80802 Munich, Germany

T: +49 89 3800 0 

E: info@allianz.com

STOCK EXCHANGE

LISTING

  • Dow Jones Sustainability Index
  • Listed in the 2018 Bloomberg Gender Equality Index- for strong commitment to gender diversity
  • A+ Ratings from the Principles for Responsible Investment
  • AAA Rating form the MSCI ESG Research Rating

EMPLOYEES

142,300

CHIEF SUSTAINABILITY OFFICER

Urs Bitterling

AWARDS

  • 2017 Human Rights Business Award (from the Australian Human Rights Commission)
  • 2017 Cross-Cultural Management Award (from the Australian Human Resources Institute)
  • finalist in the 2017 Business Inclusion Award (from the Migration Council)  
  • 2020 SAM’s Gold class award

CONTENT SOURCE

EXTRA READINGS

N/A

Allianz

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Allianz SE engages in the provision of insurance and investment advisory services. 

It operates through following segments:

  • The Property-Casualty segment offers insurance on personal accidents, general liability, fire, legal expense, credit, and travel.
  • The Life/Health segment consists of annuities; endowment and term insurance; unit-linked and investment-oriented products; private and supplemental health; and long-term care insurance.
  • The Asset Management segment provides institutional and retail asset management products and services.
  • The Corporate and Other segment includes treasury, banking, and alternative investment activities.

In 2018, over 142,000 employees in more than 80 countries achieved a total revenue of 132 billion euros and an operating profit of 11.5 billion euros for the group.

Allianz is one of the world’s largest investors, managing around 764 billion euros on behalf of its insurance customers. Furthermore, their asset managers PIMCO and Allianz Global Investors manage more than 1.6 trillion euros of third-party assets.

Company Sustainable Activity

By the very nature of what Allianz does – protecting people and businesses against risk – it contributes to its customers’ long-term financial well-being and to stabilizing local economies. 

Insurance is one of the key ways by which it limits the impacts of climate risks and compensate for climate-related damages. The higher the level of insurance coverage a country has, the more resilient it is to extreme natural events. 

Furthermore, following an extreme weather event such as a flood or hurricane, insurance payments are often a fast and reliable solution to help victims recover quickly, preventing them from falling into, or deeper into, poverty. 

The Corporate Responsibility Strategy is organized around three pillars through which Allianz responds to its material issues: 

  • Low-carbon economy: Using its roles as an insurer and investor to help manage the risks arising from climate change and to promote the low-carbon economy. Its Climate Change Strategy lies at the heart of its business model that aims to protect people and businesses from risk. 
  • Social inclusion: Using its roles as an Insurer, Employer and Committed Corporate Citizen to contribute to more inclusive societies. Encouraging Future Generations is its new social inclusion program that is promoting inclusion of young people worldwide. 
  • Business integration: Managing material ESG risks and seizing ESG opportunities, while embedding compliance, responsible sales, transparency as well as data protection and privacy across all areas of its business. The global ESG Framework ensures ESG integration in all their insurance business and investments of proprietary assets.

CARBON REDUCTION STRATEGY

“We have a long-established carbon reduction strategy to manage CO2 emissions from our operations, for example through energy-efficient planning, construction and operation of buildings, buying green electricity, and using carbon efficient vehicles. In May 2018, we joined the Science Based Targets initiative (SBTi) and committed to set long-term climate goals, linked to the Paris Climate Agreement to limit global warming to well below 2°C.

Allianz Group has been carbon-neutral since 2012, achieved by neutralizing our remaining CO2 emissions through investments in carbon-reduction projects.

In 2018, under the RE100 initiative, we committed to source 100% renewable power for our group-wide operations by 2023. This commitment will more than double the share of renewables in our electricity mix. It covers the power demand for the office space we occupy and our data centers.” according to the company.

FINANCING A LOW-CARBON ECONOMY

“With a growing portfolio of wind and solar power our equity investments in renewable energy at the end of 2018 were 3.8 billion Euro (2017: 3.7 billion Euro). Next to our equity investments, we provided debt financing to renewable energy projects amounting to over 3.0 billion Euro by the end of 2018 (2017: 1.9 billion Euro).

In total, we have invested 6.8 billion Euro in renewable energy projects, including 86 wind parks and 9 solar farms with a combined generating capacity of 2.2 GW.

Through our fund investments, we also finance energy innovations, energy efficiency measures and renewable energy on a small and large scale to enable the global energy transition. Examples include investments in the AllianzGI Renewable Energy Fund, the Méridiam Transition Fund, and the Mini Hydro Power Plant Fund in Indonesia. Our green bond portfolio is growing, with current investments of 3.6 billion Euro by the end of 2018 (2017: 2.5 billion Euro). The same is true of our investments in certified green buildings, which stand at 13.3 billion Euro at the end of 2018 (2017: 11 billion Euro).” according to the company.

DECARBONIZING OUR INVESTMENTS

Allianz has not financed coal-based business models since 2015; no new investment shave been allowed, equity stakes have been divested and fixed income investments made before 2015 are in run-off.

In May 2018, they announced a further commitment to expand the scope of coal exclusions. They decided to stop offering P&C insurance for single-site coal-fired power plants and coal mines, be they operated or planned, and strengthened their coal exclusion approach in investments by introducing forward-looking criteria, covering also new coal installations that are not in line with 2°C pathways. For both insurance and investments, they are committed to reduce the thresholds to eventually 0% in 2040 latest with the next step being a reduction to 25% in 2022.

Their strategy is regularly updated and will be aligned with the recommendations developed by the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). The Climate Team within the Corporate Responsibility departments works on early identification and measurement of climate risks and opportunities as well as on integrating them into Allianz’s business both for the investment and the insurance side.

COMMITTED CORPORATE CITIZEN

Allianz is focused on breaking down barriers to social inclusion for a better, more productive future. They support low-income customers in Asia, Africa and South America to close the gap for people who need access to low-cost financial services. In 2016, it made social inclusion one of the three priorities of its Corporate Responsibility Strategy

  • WINNER OF THE 2018 ALLIANZ FUTURE GENERATIONS AWARD: THE PICHA PROJECT

“The Picha Project from Malaysia received the very first Allianz Future Generations Award of 40,000 Euro. It is a social enterprise that empowers refugees in Malaysia to generate an income stream through food delivery and catering businesses. Today, it generates income for over a dozen families from Myanmar, Yemen, Syria and Ethiopia, taking up catering orders for up to 300 guests. Thanks to the project, these refugee families can now afford to send their children to school.” according to the company.

  • ALLIANZ AUSTRALIA – WINNER OF THE 2017 ALLIANZ SOCIAL INNOVATION FUND

“The Allianz Ladder is part of our partnership with Settlement Services International (SSI) that includes Education Scholarships and the Sustainable Employment Program, for which Allianz was awarded the Human Rights Business Award in 2017. In 2018, the project continued to assist refugee youth transition into the Australian workforce by helping them find meaningful employment. Allianz Ladder engages young refugees in a program of development, mentoring and innovation sessions that help them develop foundational business skills such as problem solving, entrepreneurialism, communication and teamwork. It seeks to support young people making the transition from study to employment. Selected participants progress into the Allianz Sustainable Employment Program which, to date, has provide permanent employment to 24 refugees, along with almost 100 educational scholarships and a refugee youth pre- employment pathway that is being used as a template with other organizations.” according to the company.

Certificates

  • ISO 14001
  • ISO 20400
  • ISO 9001

Sustainable Development Goals

How company covers SDGs

SDG5: WOMEN AND DIVERSITY IN LEADERSHIP

Allianz has group-wide gender parity in its workforce. It continues to drive change to reflect this at management level’s taking deliberate actions to support future female leaders world-wide. 

  • 51% Women in the workforce (2018: 51.2 percent)
  • 31% Women on Boards of Management (Target 2021: 25%)
  • 38% Female managers in the core business (2018: 37.8 percent)
  • 20% Women on the Allianz SE Board of Management (Target 2021: 30%)
  • 40% Women in talent pools (Target 2021: 40%)
  • 33% Allianz SE Supervisory Board status for diversity (On-going Target: 30%)

SDG 1/8/17: SOCIAL INCLUSION

They promote social inclusion through their Corporate Citizenship programs which focus on empowering children and youth.

With 13 foundations around the world, Allianz contributes to a wide range of philanthropic activities. Together, these foundations enable Allianz to support a wide range of initiatives while recognizing that each country has different social needs and priorities. Allianz’s operating entities and 13 corporate foundations therefore adapt the strategy to meet local needs and priorities.

Corporate citizenship activities in general have been shown to contribute to improvement employee satisfaction and customer satisfaction. This reflects the potential of corporate citizenship activities to improve their reputation and employer brand. Within its corporate citizenship activities, the Encouraging Future Generations Program is Allianz’s global lighthouse program. It includes an ambition to increase the number of children and youth benefited by 20 percent by 2020 (baseline 2018). The program is focused on the following three priority projects and partnerships:

  • Working with social entrepreneurs around the world and enable them to scale up ideas that overcome barriers in youth employment and education through the Allianz Future Generations Award.
  • Empowering local Allianz entities to work together with civil society to bring innovative solutions to local communities through the Allianz Social Innovation Fund.
  • Leveraging expertise within Allianz by globally supporting SOS Children’s Villages.

In 2019, their efforts reached 660,000 beneficiaries worldwide, including 290,000 children and youth.

SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all 

  • 7.1  By 2030, ensure universal access to affordable, reliable and modern energy services.
  • 7.2  By 2030, increase substantially the share of renewable energy in the global energy mix.
  • 7.3  By 2030, double the global rate of improvement in energy efficiency.

INSURING SOLAR IN THE NETHERLANDS

In April 2019, one of the largest PV plants in the Netherlands – an 18 MW photovoltaic plant located close to Schiphol Airport – became operational. Allianz Climate Solutions provided financial advisory services and insurance solutions in cooperation with TRIO Investment B.V., a Dutch renewable energy investment company.

SDG 9 

GLOBAL INVESTORS FOR SUSTAINABLE DEVELOPMENT ALLIANCE

In October 2019, Secretary-General of the United Nations, António Guterres, announced the Global Investors for Sustainable Development Alliance (GISD) initiative. It aims to leverage finance and investment know-how to foster the 2030 Development Agenda.

The initiative is co-chaired by Oliver Bäte, CEO of Allianz SE. According to the U.N., achieving the U.N. SDGs requires substantial financing in sectors such as health, education, transportation and climate change. Close collaboration of the private and public sectors in both developing and developed countries will be key to achieving the SDGs.

GISD members commit to actions such as establishing partnerships to strengthen relations between investors, governments and multilateral institutions that foster scalable investment opportunities in developing countries. They will also roll out and promote the use of innovative financing facilities and tools that enhance the risk-return profile of investments in sustainable development, including in sectors and countries where investment is most needed.

“As responsible companies, we can create long-term value by embedding sustainability into our core business. Investing in the stable development of societies across the globe is not only the right thing to do, it also provides economic opportunities. We are convinced that investments in emerging markets can foster sustainable growth without losing sight of our customers’ interests.”

AFRICAGROW

In Africa, it is mainly small companies that create the most jobs and support income security. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank and Allianz Global Investors have set up a new fund of funds – AfricaGrow.

The project is an important component of Allianz’s Africa strategy. The EUR 170 million fund of private equity funds blends public finances and private investments from Allianz companies. It will finance 150 innovative SMEs and start-ups in reform-oriented African countries by 2030, promoting sustainable economic and social development and creating more than 25,000 new jobs. Careful monitoring will ensure the fund has a measurable positive social and/or economic impact.

SDG 13/17: CLIMATE ACTION 100+

Allianz is an active member of Climate Action 100+. More than 370 investors representing more than 35 trillion U.S. dollars in assets under management have signed on to the initiative. Its purpose is to engage with the world’s largest corporate GHG gas emitters to set GHG emission reduction targets, strengthen climate-related financial disclosures and improve governance on climate change.

SDG13: Take urgent action to combat climate change and its impacts

  • 13.1  Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
  • 13.2  Integrate climate change measures into national policies, strategies and planning.
  • 13.3  Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

DECARBONIZING INVESTMENTS

Allianz introduced an exclusion of coal-based business models in 2015. No new investments have been allowed, equity stakes have been divested and fixed income investments made before 2015 are in run-off. This approach was further refined through the forward-looking approach in 2018.

In addition to the exclusion of utilities and mining companies involved in coal above their threshold (30+% generation from coal, 30+% revenues from thermal coal mining), the 2018 update to their exclusion introduced a forward looking component. Through the forward-looking approach, companies planning to significantly expand their coal-based capacities or having to retire a significant part of their generation portfolio are also excluded. The threshold will be gradually reduced to zero by 2040.

The exclusion list is updated annually based on data from an ESG data provider. This leads to companies being added to and removed from the exclusion list over time, based on their reported coal share.

Divestment status

In 2019, Allianz divested a further 14 million Euro in equities and an additional 236 million Euro fixed income is in run-off. This brings the total of divested/run-off assets to 340.5 million Euro/5,942.7 million Euro.

SDG 7/12/13/17: ENVIRONMENTAL MANAGEMENT

Operational implementation of the EMS is monitored by the Group Environmental Officer and supported by the Board of Management of Allianz SE. In 2019, 95 percent of employees were included under the scope of the EMS (2018: 94 percent).

The Allianz SE headquarters in Munich has been certified to the international environment management standard ISO 14001 since 2017. In July 2019, Allianz Germany achieved ISO 14001 certification for its Allianz Campus in Unterföhring.

CARBON REDUCTION STRATEGY

The carbon reduction strategy for corporate operations is designed to reduce greenhouse gas (GHG) emissions from Allianz Group operations through energy-efficient planning, construction and operation of buildings, buying green electricity and using carbon efficient vehicles.

In May 2018, Allianz joined the Science-Based Targets initiative (SBTi). They have committed to set long-term climate targets for Allianz’s proprietary investments and business operations in line with the Paris Agreement’s climate goal.

In 2019, Allianz SE also signed up to the second iteration of the City of Munich’s Klimapakt program, reaffirming its commitment to help the city meet its climate targets.

GHG EMISSIONS

Allianz’s most material GHG emissions arise from its energy consumption, business travel and paper use. It has committed to reduce GHG emissions by 30 percent per employee by 2020, against a 2010 baseline. By the end of 2019, GHG emission had been reduced by 35 percent per employee (2018: 27 percent). These further reductions are mainly the result of energy efficiency improvements through data center consolidation, an increase in the share of renewable power, and reductions in air and private car travel.

In 2020, they will develop their next set of GHG emission targets up until 2025, in line with the latest climate science.

REDUCING ENERGY CONSUMPTION

Allianz’s target is to reduce energy consumption in its office buildings per employee by 30 percent by 2020, compared with 2010.They exceeded their 2020 target, with a 37 percent cut in 2019 (2018: 34 percent). This is mainly due to local data center closures in Germany and France.

RENEWABLE ENERGY

Allianz has committed to source 100 percent renewable power for its group-wide operations by 2023 as a signatory to the RE100 initiative. With operations in more than 70 countries, they have started to engage deeply with suppliers and landlords to achieve it.

In 2019, 49 percent of the electricity they used came from renewable, low-carbon sources (2018: 45 percent). Allianz U.S. Life in North America switched to renewable electricity from local wind farms and all data centers in U.S. and Europe are now powered by 100 percent renewable energy.

CUTTING GHG EMISSIONS FROM BUSINESS TRAVEL

Business travel in 2019 accounted for 37 percent of GHG emissions from operations (2018: 37 percent). Allianz encourages its employees to travel only for business-critical reasons and for client-related meetings exceeding three hours. In 2019, they launched a new travel booking tool for their Germany-based operating entities that shows the carbon footprint of business trips by air travel. Furthermore, they continue to improve the GHG performance of the vehicle fleet.

CARBON-NEUTRAL SINCE 2012

Allianz has been carbon-neutral since 2012 by investing in projects that offset its operational emissions. In 2019, they retired 334,033 carbon credits by investing in low-carbon initiatives, each credit accounting for one metric ton of carbon. The savings in emissions are independently measured and certified once a year.

Investments

Wildlife Works Carbon LLC

They hold a 10 percent share in WWC, the world’s leading developer of Reducing Emissions from Deforestation and Forest Degradation (REDD) projects. This investment supports forest protection in Kenya and the Democratic Republic of Congo (DRC). The Kenyan Kasigau Corridor REDD project aims to offset 1 million tons of carbon emissions per year, while the DRC REDD+ project achieves an average of 5.7 million tons of carbon reductions per year.

Rimba Raya

They began investing in this REDD project in Borneo, Indonesia, in 2013. By helping to prevent the deforestation of nearly 65,000 hectares of peat swamp forest, the world’s largest project of its kind aims to avoid more than 130 million tons of carbon emissions.

PAPER REDUCTION

Efforts to reduce paper consumption are underpinned by the increasing shift towards digital communication with customers and embedding paperless ways of working in Allianz offices.

Allianz’s target is to reduce paper use by 40 percent per policy by 2020 against a 2014 baseline. By the end of 2019, they had achieved a reduction of 53 percent (2018: 41 percent), putting us well on track to achieve the 2020 target.

WATER

Minimizing water use is a principle commitment under the Group Environmental Guidelines and is of particular relevance in areas at risk of water-stress. Because Allianz’s water consumption is not significant driver of their environmental impact, they do not have a specific water reduction target. However, they work to reduce water consumption in Allianz offices through employee awareness campaigns and by investing in waterless facilities and other water-efficient technologies.

WASTE

They seek to minimize the waste they generate and to re-use or recycle materials wherever possible. Allianz employees also actively support local clean up activities. Once again, Allianz partnered with World Cleanup Day in 2019. Over 20 Allianz entities took part in the campaign, which encourages employees, customers and the general public to unite to clean up their local environment.

SDG 9/11/13: CLIMATE CHANGE AND DECARBONIZATION

INSURING CLIMATE RISKS

Allianz aims to reduce the impacts of climate risks by incentivizing preventive measures to increase customers’ resilience and compensating for climate-related damages. Examples include risk consulting services offered by AGCS and their work with the German Corporation for International Cooperation (GIZ) to pilot innovative insurance solutions in emerging and developing countries.

Their work includes researching the actual and future impacts of climate change to provide the best possible risk advice to society and customers. This research helps to inform and develop both prevention and resilience solutions.

With its experience as a micro insurer and reinsurer in agriculture, Allianz brings innovative climate risk insurance to vulnerable regions. They include weather index insurance, yield loss and animal mortality cover.

PHASING OUT COAL IN THEIR INSURANCE PORTFOLIOS

Allianz announced in May 2018 that it would no longer insure single-site/standalone coal-fired power plants or mines whether in operation or being planned. Allianz is committed to completely phasing out all coal-based risks from P&C insurance portfolios by 2040 at the latest.

Allianz continues to insure companies that generate electricity from multiple sources, including coal, other fossil fuels and renewable energies. These are individually reviewed using their ESG criteria.

INSURING THE LOW-CARBON ECONOMY

Allianz actively supports the InsuResilience Global Partnership, which builds upon the G7 Climate Risk Insurance Initiative to provide climate risk insurance for up to 500 million people in the most vulnerable developing countries by 2025.

Allianz is one of the leaders in insuring low-carbon technologies, providing standardized and tailor-made insurance products as part of its Sustainable Solutions offering. Through deep technological expertise and understanding of the power and energy industry, they enable investment and actively support clients with their renewable energy transition.

Allianz aims to reach significant market share in emerging renewable energy markets, building on its expertise from more than 60 countries where it already insures renewable energy. In 2019, they continued to scale renewable energy insurance services in fast-developing growth markets through the ‘Scaling Up Renewable Energy’ (SURE) initiative. SURE aims to cement Allianz’s position as the global ‘go-to’ provider of insurance for renewable energy projects and infrastructure. It targets fast developing growth markets, such as the Central and Eastern Europe region and several African countries, to support their transition to the low-carbon economy.

SDG 17

GLOBAL INVESTORS FOR SUSTAINABLE DEVELOPMENT ALLIANCE

In October 2019, Secretary-General of the United Nations, António Guterres, announced the Global Investors for Sustainable Development Alliance (GISD) initiative. It aims to leverage finance and investment know-how to foster the 2030 Development Agenda.

The initiative is co-chaired by Oliver Bäte, CEO of Allianz SE. According to the U.N., achieving the U.N. SDGs requires substantial financing in sectors such as health, education, transportation and climate change. Close collaboration of the private and public sectors in both developing and developed countries will be key to achieving the SDGs.

GISD members commit to actions such as establishing partnerships to strengthen relations between investors, governments and multilateral institutions that foster scalable investment opportunities in developing countries. They will also roll out and promote the use of innovative financing facilities and tools that enhance the risk-return profile of investments in sustainable development, including in sectors and countries where investment is most needed.

“As responsible companies, we can create long-term value by embedding sustainability into our core business. Investing in the stable development of societies across the globe is not only the right thing to do, it also provides economic opportunities. We are convinced that investments in emerging markets can foster sustainable growth without losing sight of our customers’ interests.”

CIVIC PARTNERSHIPS

Long-term partnerships are instrumental to delivering Allianz’s sustainability agenda. Strategic partners include:

  • SOS Children’s Villages
  • German Corporation for International Cooperation (GIZ)
  • Sustainable Development Investment Partnership (SDIP)
  • International Paralympic Committee
  • International Olympic Committee (as of 2021)
  • U.N.-convened Net Zero Asset Owner Alliance
  • U.N.-convened Global Investors for Sustainable Development (GISD) Alliance

Progress

  • Reduction by 27% their CO2 emissions per employee in 2018, against a 2010 baseline. 
  • 45% of their electricity use came from renewable, low-carbon sources in 2018 (2017: 45%)
  • 27% cut in CO2 emissions per employee against their 2010 baseline
  • 34% reduction in energy consumption from office buildings per employee against their 2010 baseline
  • Revenue generated from their sustainable solutions including the number of products offered: 1,557.15 million Euro, 185 products
  • Total sustainability-themed investments, incl.climate aspects: 25.1billion Euro

Amount of green assets in the portfolio, all with growth targets:

  • Debt and equity investments in renewable energy: 6.8 billion Euro, an increase by 1.2 billion Euro
  • Number of renewable energy parks in portfolio: 95
  • Capacity of renewable energy parks in portfolio: 2.2 GW
  • Debt and equity investments in green buildings: 13.3 billion Euro
  • Investments in green bonds: 3.6 billion Euro

Allianz’s sustainability targets are very broad: for instance, they plan to phase-out all coal-based business models from their P&C insurance portfolios by 2040 at the latest. Besides, according to their ESG data though, the revenues from sustainable solutions, the sustainability-themes investments and the renewable energy investments are all on the rise every since the 2016 baseline. The company seems committed to sustainability because of the reasons quoted before but also because Allianz is listed in sustainable indexes as the DJSI and holds good certificates & awards. It achieves the rating of B.

Videos

Share this Post