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economic activities contributing to climate change mitigation (including transition enabling) and adaptation, in alignment with existing climate-related sustain- ability taxonomies: EU taxonomy on sustainable finance climate category as well as SFDR Article 9 and beyond. 15 Target covers P&C |
corporate portfolio with reported emissions managed by AGCS. Base year for both is 2022. Allianz raises its climate ambitions further Günther Thallinger, the Allianz Member of the Board of Management responsible for investment management and sustainability, explains the plan. 14 |
Allianz SE Sustainability Reporting – short version 5. CLIMATE CHANGE: THE ROAD TO NET-ZERO 5.1 Climate-related risks Climate change is a major threat to the resilience of so- cieties and natural ecosystems, whereas it is an existenti- al business risk for us. This is why we work on mitigation |
and adaptation. We monitor the evolving risk landscape as risks can take many forms. Climate change impacts our business through physical risks such as damage from extreme weather events like floods, hail or cyclones. We are also impacted by transition risks that result from the |
transition to a low-car- bon economy. These risks are driven by the evolution of cli- mate policy, technological progress, changes in consumer sentiment, or impacts from climate change litigation. Another way to look at it is that climate change impacts us as an insurer providing |
insurance policies covering, for example, health impacts, property damage or litigati- on claims. Second, as a large-scale institutional investor with significant interests in various economies, companies, infrastructure and real estate that might be affected by the physical |
impact of climate change and the transition to a low-carbon economy. We expect climate change will have significant impact on global economies and our business. The risks and oppor- tunities associated with climate change we see emerging today will transform and increase over the |
mid to long term. Climate change considerations are an integral part of our insurance and investment strategy. In order to foster risk awareness, build expertise in the assessment of financial risks from climate change, test our business strategy resi- lience, and inform |
risk management and business decision- making, we apply climate stress-testing and scenario analysis. For further details, see our Group Annual Report 2023, p.71f. 15 Allianz SE Sustainability Reporting – short version 5. CLIMATE CHANGE: THE ROAD TO NET-ZERO 5.2 Actions and progress |
across the value chain At Allianz, we have been focused on climate actions for several years16. We have, for example, been strategical- ly investing in and insuring low-carbon assets for over a decade, and our Sustainable Solutions framework provi- des products and services that contribute to |
environmen- tal and social objectives. Our initial focus was on decarbonizing proprietary invest- ments and our own operations, and we are now also tur- ning our attention to our P&C insurance. This chapter sum- marizes our policies and progress against the Net-Zero Transition Plan |
across three different areas of our business. 16 We have started working on harmonizing terminology and underlying eligible technologies related to the targets for Climate Solutions (currently used for proprietary investments) and Transition Solutions (currently used for P&C insurance). We |
expect to conclude this work and report along it in FY2024. 16 Allianz SE Sustainability Reporting – short version 5. CLIMATE CHANGE: THE ROAD TO NET-ZERO 5.2.1 Decarbonizing P&C insurance For our P&C insurance portfolio, we have committed to reducing GHG emissions to net-zero by 2050. |
Our inaugural 2030 targets focus on two core portfolios: Another key lever will be providing incentives for reducing emissions via mileage-based product offerings, as part of our existing sustainable solutions offering, which is ex- plained in detail in chapter 3.1, |
Environmental matters, Sustainability Report 2023, p.51ff. 1. Motor retail insurance – insurance for the protection of cars. 2. P&C commercial insurance – insurance coverage that is designed to protect businesses from financial loss due to property damage, liability claims, and |
other risks. Motor retail insurance P&C commercial insurance For P&C commercial insurance, we have set a target to decrease GHG emission intensity by 45% by 2030 gene- rated by some of the large companies that we insure as part of the Allianz Global Corporate & Specialty |
corpora- te portfolio, compared to the 2022 baseline. For motor retail insurance, our target is to reduce abso- lute carbon emissions17 within our portfolio by 30% by 2030, compared to the 2022 baseline which aligns with the goal of limiting global warming to 1.5°C. The targets |
are set for those companies for which green- house gas emissions data is available. These targets repre- sent roughly 13% of the Commercial segment premiums for which emission accounting methodologies are currently available.18 We are focusing our efforts on the most relevant markets, |
where reliable data is also available. The emission reduc- tion target applies to nine key European markets: Austria, Belgium, France, Italy, Germany, Netherlands, Spain, Swit- zerland and the UK. These targets cover roughly half of the premium and roughly 40% of insurance-associated emissi- ons |
of our overall motor retail segment. The biggest levers for achieving the targets will be increa- sing our share of electric vehicles as well as incentivizing customers to drive less. Therefore, we have set two addi- tional sub-targets: • By 2030, we want to engage with 20 |
million current and potential customers to support their transition to electric mobility. • We are committing to offering comprehensive insurance products for battery electric vehicles and the related eco- system, to support our customers in their transition to this new technology. Therefore, |
the share of battery electric vehicles (based on the number of passenger vehicles) in our motor portfolio will exceed the share of battery elec- tric vehicles in the respective markets. 17 Absolute insurance-associated emissions are the share of an insured’s absolute emissions that is |
associated with the insurer‘s underwriting portfolio and are expressed in tCO2 with respect to our Motor Retail target. We are committed to driving decarbonization across all in- dustry sectors by promoting transparency and supporting customers on their net-zero journey. Our actions include: • |
Engaging clients who are not reporting GHG emissions, particularly the top 100 by premium size and industry sector emission intensity, to develop emissions reporting and disclosure approaches. • Engaging with aviation and marine sector customers to exchange best practice on |
decarbonization strategy and to close the GHG reporting gap. • Dedicated engagement of high-emitting companies to help them develop science-based net-zero strategies with the support of our experts. What’s more, as part of our Net-Zero Transition Plan, in 2023 we set |
growth targets for low-carbon technologies. We are aiming for 150% profitable business growth of tran- sition solutions in our commercial insurance business by 2030, with respect to commercial property damage and business interruption coverages, against a 2022 baseline. 18 In |
line with Lines of Business currently covered by the PCAF Standard. Scope coverage is unchanged compared to the Inaugural Net-Zero Transition Plan. Share of premiums related to GHG reduction target follows IFRS definition of gross written premiums and deviates from PCAF, which excludes external |
acquisition costs; following PCAF definition of insurance premiums, scope coverage represents roughly 16% of the eligible premiums in the commercial segment. More details can be found in the explanatory notes of the NFS. 17 Allianz SE Sustainability Reporting – short version 5. CLIMATE |
CHANGE: THE ROAD TO NET-ZERO 5.2.2 Contribute to a decarbonizing economy with our proprietary investments Our first 2030 target for our proprietary investments is a 50% reduction in absolute GHG emissions by 2030 for listed corporates (corporate bonds and public |
equity) against a 2019 baseline. Our second target is a 50% emis- sion intensity reduction by 2030 for all listed and unlisted corporate exposure. Our investment targets follow the rule of thumb that we need to halve emissions every ten years and are in line with the best available |
science. They are quite detailed and de- pend on the asset class we invest in and cover most invest- ments into corporations and real estate. We use the target-setting framework of the UN-convened Net-Zero Asset Owner Alliance (NZAOA) Target Setting Protocol19 to embed best practice in |
setting climate targets for our proprietary investment portfolios. Our targets are set with two objectives: maximize our potential contribution towards a reduction of emissions and increase the resilience of our investment portfolio against negative effects stem- ming from climate |
change. 19 https://www.unepfi.org/industries/target-setting-protocol-third-edition/ 50% by 2030 reduction in absolute GHG emissions for listed corporates (corporate bonds and public equity) against a 2019 baseline 50% by 2030 emission intensity reduction for all listed and unlisted |
corporate exposure As we overachieved our first 2025 emission reduction decar- bonization targets for corporate bonds and listed equities in 2023, we have updated our targets and ambitions for 2030 considering potential developments in key industries and learnings from previous years. |
Our actions for reaching our targets in investments happen in the following areas: Firstly, we are reallocating our portfolio with measures including • Allocating more capital towards climate leaders and over time reducing our exposure to laggards. • Targets and frameworks for our asset |
managers to drive changes across asset classes, investees and sectors. This includes breaking global targets down to individual asset manager mandates and monitoring constantly decarbo- nization performance. • Exclusion of certain companies based on global guide- lines for fossil |
fuels. • Financing the transition of companies which share our 1.5°C ambition in the hard-to-abate cement and steel sectors. Second, we are decarbonizing our portfolio by engaging with investee companies through measures including • Targeting GHG emissions reductions in |
investee compa- nies and real estate investments, with specific approa- ches based on the ownership structure. For example, for fully-owned real estate assets, we directly influence emis- sions through deep refurbishments and we impact emis- sions for minority ownership assets through |
engagement or voting in shareholder meetings. • Engaging with top emitters in our portfolio and participa- ting in several multilateral engagement initiatives. • Systematically evaluating all our asset managers on cli- mate topics and engaging with laggards. • Participating in sector |
engagements, especially in the oil and gas and steel sectors, to support our sector targets for 2030. 18 Allianz SE Sustainability Reporting – short version 5. CLIMATE CHANGE: THE ROAD TO NET-ZERO Third, we want to increase Climate Solutions investments by at least € 20 billion from |
current level (€ 37 billion as of 31.12.2023), subject to market environment and cons- traints. 20 These investments may take many forms inclu- ding infrastructure projects such as renewables, sustain- able green buildings, investments into sustainable forestry, and |
hydrogen. We strive to invest in companies with a high share of EU taxonomy-aligned revenues via our listed corporate port- folio. Fourth, decarbonization of high-emitting sectors is critical to limiting global temperature increase to 1.5°C; therefore, Allianz sets |
sector targets for investee companies in the oil and gas, electric utilities, steel, and automobiles sector. These sector targets are in line with sector decarbonization path- ways from the Net Zero Emissions by 2050 Scenario of the International Energy Agency (IEA)21. |
In addition, the Allianz Statement on oil and gas business models22 and the Allianz Statement on coal-based business models23 are reflected in the targets. 20 Climate Solutions are defined as economic activities contributing to climate change mitigation (including transition enabling) and |
adaptation, in alignment with existing climate-related sustainability taxonomies: EU taxonomy on sustainable finance climate category as well as SFDR Article 9 and beyond. 21 Net-Zero Emissions by 2050 Scenario (NZE) – Global Energy and Climate Model – Analysis – IEA 22 Allianz Statement on |
oil and gas business models 23 Allianz Statement on coal-based business models Allianz invested in 960MW offshore wind farm He Dreiht in the German North Sea View Video Allianz SE Sustainability Reporting – short version 19 5. CLIMATE CHANGE: THE ROAD TO NET-ZERO 5.2.3 Decarbonizing our |
own operations For our own operations, we have set an intermediate tar- get24 to reduce GHG emissions by 70% as of year-end 2030 (65% as of year-end 2029) against a 2019 baseline. Our main levers for reducing GHG emissions for our own operations are the following: • Our aim is to source |
100% renewable electricity for our worldwide office buildings and data centers through our participation in the RE100 initiative, a global initiative bringing together the world’s most influential businesses committed to 100% renewable electricity. • We are aiming to reduce |
our GHG emissions from busi- ness travel by 40% by 2025 against a 2019 baseline. We are regularly reviewing our travel regulations to encom- pass climate-related topics and we promote digital mee- tings. In addition, we are aiming to electrify our corporate fleet by 2030 as part of EV100, a |
global initiative accele- rating the transition to electric vehicles (EVs). • We aim to reduce the energy consumption per employee in office buildings by 20% against a 2019 baseline. We are targeting energy efficiency and energy reduction in our office buildings by applying |
environmental manage- ment systems and energy efficiency processes based on ISO25 14001 and 50001 standards. In addition, we have developed a Buildings Standards Catalogue to establish a harmonized approach to sustainability in buildings and promote best practices across our operating entities. |
• We are asking all global framework vendors to publicly commit to net-zero GHG emissions in line with a 1.5°C trajectory by 2025. Furthermore, we have updated our procurement policy and processes and included sustain- ability criteria in RFIs (Request for Information)/RFPs |
(Re- quest for Proposal) and tenders for our IT partners. 24 As the specific definition of net-zero is still evolving for financial institutions and we anticipate Corporate Sustainability Reporting Directive (CSRD) require- ments, we are no longer referring to the 2030 target for our own |
operations as a net-zero commitment. We will instead refer to those as 2030 intermediate targets. The rest of the decarbonization and removal targets for own opera- tions remain as communicated in the Inaugural Net-Zero Transition Plan. For a detailed view on our GHG emissions and corresponding |
targets, please refer to the chapter ‘Own Operations and further value chain’ in our Sustainability Report. 25 ISO = International Organization for Standardization 20 Allianz SE Sustainability Reporting – short version 5. CLIMATE CHANGE: THE ROAD TO NET-ZERO 5.3 Partnerships: Together we |
can make it happen We have tackled many challenges since our foundation 134 years ago. We know that climate change is too big a challenge for single entities to manage alone. In this respect, at Allianz we help create networks and al- liances. We also partner with organizations spanning |
pu- blic, private and voluntary sectors. As an example, Allianz co-leads the development of a parametric flood insurance solution for Ghana designed to benefit poor and vulnerable households and enhance the country’s climate and financi- al resilience.26 Another important example of our |
commitment to creating change is the formation of the UN-convened NZAOA27, which Allianz helped to establish in 2019. This is a mem- ber-led initiative of institutional investors (87 members as of December 2023 with USD 9.5 trillion assets under ma- nagement28) |
committed to transitioning their investment portfolios to net-zero GHG by 2050. The NZAOA requires members to take into account the best available scientific knowledge including the findings of the IPCC, and regularly reporting on progress, including establishing intermediate |
targets every five years in line with the Paris Agreement Ar- ticle 4.9.29 The NZAOA members are the first in the finance industry to set intermediate targets, which include emission reduction ranges for 2025 and for 2030. Several other al- liances have since been established, creating a |
movement of net-zero initiatives in the financial industry and beyond. With such a framework in place, we prove that not only do we set targets, but our progress reports show that we can reach them. By doing this, we demonstrate that the targets are achievable and, as such, we help to create |
trust. For Al- lianz, this is another way to transform risks into opportuni- ties and drive change. 26 In the context of the Ghana project, the ‘poor and vulnerable’ target group has been defined based on the InsuResilience Global Partnership (IGP) / MCII definition: Vulnerable is defined as |
“people living on 3.1 to 15 USD PPP / day who are particularly exposed to climate risks and at high risk of slipping (back) into poverty due to climate change-related extreme events.” 27 UN-convened Net-Zero Asset Owner Alliance – United Nations Environment – Finance Initiative (unepfi.org) |
28 Members – United Nations Environment – Finance Initiative (unepfi.org) 29 AOA-COMMITMENT-DOC-2022.pdf (unepfi.org) 21 Allianz SE Sustainability Reporting – short version 6. Governance: The structure supporting our efforts We engage across the organization to create sustainable societies. |
We act with integrity. At Allianz, our success is built on the trust that our custo- mers, investors, employees and the public have in our per- formance and integrity. Allianz fosters a corporate culture of individual and collective responsibility for ethical con- duct and |
adherence to the rules. We act with integrity and are committed to complying with laws, regulations and other external rules that govern our operations. Sustainability is governed by the Board of Management and supervised by the Supervisory Board of Allianz SE, with |
support from the Group Sustainability Committee and Group Sustainability Board. The Group Sustainability Board, supported by the Chief Sustainability Officer, im plements the strategy and enga- ges colleagues across the business. Further, local responsi- bilities for sustainability |
integration are allocated at Board level and supported by at least one Sustainability Lead. We appropriately integrate sustainability into our remun- eration systems, encouraging board members to consider environmental, social, and governance factors in decision making |
process. Our approach combines accountability and governance to drive a consistent strategic approach. For more detailed information see Non Financial Statement and Sustainability Report. Supervisory Board (including Sustainability Committee) Board of Management Group |
Sustainability Board Six BoM members + Three Group Center heads • Regular reporting to Allianz SE Board of Management • • Advising and aligning on all relevant Group sustainability matters Further elevate sustainability topics in governance and decision-making processes of the Group |
Regular exchange and alignment with committees and Heads of Group functions on sustain- ability matters Global Sustainability • Full-time support to Sustainability Board • Sustainability integration into organization and business Regular exchange and alignment with represen- tatives |
from operating entities on sustainability matters Graphic 2: Governance 22 Allianz SE Sustainability Reporting – short version3. INTEGRATING SUSTAINABILITY TO ACHIEVE OUR GOALS Appendix Appendix I) Navigating the evolving reporting landscape Material topics and aspects At Allianz, we |
value the trust shown by our stakeholder groups, which includes customers, shareholders and em- ployees, and we report on our activities. We align our management approach and reporting with international standards such as the Global Reporting Initi- ative (GRI) and recognized |
sustainability indices. We keep abreast of developments in reporting standards and re- gulations, including initiatives by the European Commissi- on (EC), the International Sustainability Standards Board (ISSB), and the World Economic Forum (WEF). Allianz will be required to comply |
with the Corporate Sus- tainability Reporting Directive (CSRD) by the financial year 2024. To achieve this, a dedicated implementation project has been set up. As such, we chose to already converge towards the CSRD with our financial year 2023 reporting for ‘Climate change’ |
and ‘Own workforce’, in terms of anti- cipating its structural and many of its content requirements. For all material matters, disclosures in accordance with the CSRD will be fully covered as of financial year 2024 repor- ting. Our reporting ecosystem Allianz has two main sustainability |
reporting products: the Non-Financial Statement (NFS), which is part of the Group Annual Report, and the Sustainability Report. Additional reporting products include the People Factbook, Allianz Group Tax Strategy, Analyst Presentation, this shortened version of sustainability |
reporting, and our Explanatory No- tes, which sets out our methodology. To assess the quality and reliability of our reporting, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsge- sellschaft (PwC) has conducted assurance reviews since the 2016 reporting year, and this year did so |
with reason- able assurance for the NFS. Additionally, an increasing number of Allianz operating en- tities now publish their own sustainability reports to comply with local regulation requirements and to serve local stake- holders. These are available for download on local Allianz websites. |
Key topics included in the Sustainability Report were sha- ped by our 2021 materiality analysis, which satisfies the GRI Principles for defining report content (accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness and verifiability). In 2023, we |
carried out a robust and comprehensive dou- ble materiality assessment process, in accordance with the CSRD and accompanying European Sustainability Reporting Standards (ESRS), accounting for the evolving methodology to cover financial materiality (risks and op- |
portunities from a business perspective) and impact mate- riality (impacts on people and planet). This has allowed us to deepen our understanding of matters previously identi- fied as being material to our key stakeholders. It also enabled us to extend our assessment to those sus- tainability |
matters that have not been focus areas so far, but are now moving more into focus, as data, methodolo- gies and overall research and regulatory guidance evolve. The process, methodology and outcome of the double ma- teriality assessment were reviewed and endorsed by our Group |
Sustainability Board. In addition, Board of Manage- ment approval has been granted via the Allianz Group Annual Report signoff process. The topics ‘Climate change’ and ‘Own workforce’ are stra- tegic sustainability focus areas at the Allianz Group, sup- ported by the GRI |
materiality assessment and confirmed by the CSRD double materiality assessment. For further details about our CSRD convergence strategy, please see our Non-Financial Statement in our Group Annual Report. The governance process for non-financial reporting is aligned with |
financial reporting. This year is our 23rd an- nual publication of the Allianz Group Sustainability Report. 23 Allianz SE Sustainability Reporting – short version Appendix II) Overview of the rules and processes in place Sustainability integration processes Business areas Details |
P&C Ins. Check Check Check Check Proprietary Investments (listed) Proprietary Investments (non-listed) Check Systematic integration of sustainability risks by conducting case-by-case due diligence of critical transactions. Systematic integration of sustainability factors |
through sustainability scoring approach. Check Exclusion of investment and insurance transactions in critical business areas. Systematic engagement with investee companies and clients on sustainability- related matters Check Inclusion of sustainability-related criteria in the |
selection, appointment and monitoring of business partners. Check Check Check Check Sustainability referral and assessment process (including sensitive business areas, sensitive countries) Sustainability scoring process (including carbon emissions, toxic emissions and waste, |
labor management, business ethics, etc.) Sustainability exclusions process (including coal, oil sands, controversial weapons, human rights) Sustainability engagement and risk dialogues (on sustainability, climate, and human rights topics) Sustainability in business partner |
selection (including asset managers, reinsurers, etc.) Graphic 3: Rules and processes 24 Allianz SE Sustainability Reporting – short version APPENDIX III) Sustainability-related targets linked to the remuneration of the Board of Management of Allianz SE In 2023 and for 2024, the |
targets for the Board of Management have been further developed to reflect sustainability priorities. The table below describes the targets in more detail. Minor wording changes were applied compared to the publications last year to create consistency with the Allianz SE Board Member |
target letters. The underlying targets remain unchanged compared to last year. Our Targets Board Targets 2023 Achievement 2023 Board Targets 2024 More details in NFS Overarching Achieve strong sustainability position (top performance in DJSI, MSCI) DJSI / S&P Global CSA1: 3rd MSCI2: |
AA Environmental Decarbonization Ensure sustainable solutions in proprietary investments and products Sustainable Investments scope grew with the addition of sub-sovereigns, active increase, market value growth and further scope expansion; framework for sustainable Life savings |
products established and growth plan for Sustainable Insurance Solutions in Property- Casualty developed Define positioning on Social in line with Allianz purpose focusing on Sustainable Development Goal 8 (SDG 8) Social positioning defined with focus on societal resilience, (financial-) |
education and employability, including Lifelong Learning 50% reduction of GHG (greenhouse gas) emissions per employee from Operations by 2023 (vs 2019) and 100% renewable electricity consumption in 2023 Follow through on net-zero ambi- tion, in particular in line with our Net-Zero |
Alliances commitments GHG emissions from Operations reduced (-62%) and renewable electricity share increased to 100%3 GHG emissions from Proprietary Investments reduced ahead of target (exceeding 40%); Additionally, Allianz Net-Zero Tran- sition Plan published, including 2030 targets |
for Proprietary investments, Property-Casualty and Operations Social Customer Loyalty Digital Net Promoter Score (dNPS) development against previous year and overall ambition level Achieved 59% Loyalty Leaders across all business segments4 Employee Engagement Inclusive Meritocracy |
Index (IMIX) and Work Well Index + (WWI +) development against previous year and overall ambition level IMIX: 81% (2022: 79%) WWI +: 76% (2022: 71%) Employability & Lifelong Learning n.a. Achieve strong sustainability position (top performance in DJSI, MSCI) Ensure sustainable |
solutions in proprietary investments and products For further insights, please refer to section Corporate sustain- ability governance and strategy For further insights, please refer to section Environmental matters and EU Taxonomy Regulations For further insights, please refer to |
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