Allianz joins Portfolio Decarbonization Coalition
In December 2015, Allianz joined the Portfolio Decarbonization Coaltion (PDC), a group of investors committed to supporting the fight against climate change. The coalition has been initiated by the United Nations Environment Programme (UNEP). The PDC now convenes 25 investors overseeing the gradual decarbonization of a total of USD 600 billion in Assets under Management (AUM), dramatically surpassing the PDC’s target of USD 100 billion. Achim Steiner, Executive Director of UNEP and UN Under-Secretary-General states: “The success of the Portfolio Decarbonization Coalition is a clear signal that leading investors are recognizing the inherent risk that climate change poses to their portfolios.”
Allianz’s climate and decarbonization actions will include the phasing out of coal investments, the use of environmental, social and governance scoring in investment decisions across its investment portfolio, and scaling up its investments in renewable energy. Allianz is one of the leading private investors in renewable energy, with more than EUR 2.5 billion committed and plans to at least double these investments in the medium-term.
Allianz signs the Paris Pledge for Action
In December 2015, Allianz joined the Paris Pledge for Action, a global initiative for non-state players to pledge support to the COP 21 agreement.
“As cities, regions, businesses, investors, civil society groups, trade unions and other signatories, coming from every sector of society and every corner of the world, we realize that dangerous climate change threatens our ability and the ability of future generations to live and thrive in a peaceful and prosperous world. (...) As a result, we the undersigned, affirm our strong commitment to a safe and stable climate in which temperature rise is limited to under 2 °C.”
“By signing The Paris Pledge, Allianz underlines its commitment to support and embark on the journey to a low-carbon and climate resilient economy, that has commenced with the Paris Climate Agreement. The time has come to anticipate unequivocal change. We already started to act accordingly by providing solutions that protect and care for our customers as we are slowly but surely transiting to a carbon neutral world”, said Karsten Löffler, Managing Director of Allianz Climate Solutions.
Open Letter from Global CEOs to World Leaders Urging Concrete Climate Action
Oliver Bäte is one of the 78 CEOs from 20 industries calling for a stringent and ambitious climate treaty in Paris. The so-called Open Letter from Global CEOs to World Leaders Urging Concrete Climate Action has been initiated by the World Economic Forum.
The Letter states that the private sector has a responsibility to engage in global efforts to reduce greenhouse gas emissions, and to help lead the global transition to a low-carbon, climate-resilient economy. This coalition further seeks to catalyze and aggregate action and initiatives from companies from all industry sectors towards delivering concrete climate solutions and innovations in their practices, operations and policies.
In April 2015, this letter has been published for the first time, by that time with 43 CEOs backing it, amongst them being Michael Diekmann, Oliver Bäte's precedessor. You can find all signatories also by the hashtag #climateCEOs.
Statement of Investor Expectations for the Green Bond Market
In 2015, Allianz SE signed the Investor Statement for the Green Bond Market. It convened a group of existing
and potential green bond buyers. It underlines the potential of green bonds:
- A green bond is a fixed income instrument whose proceeds finance projects that generate significant identifiable climate or other environmental benefits and whose use is predefined and made transparent to the investor.
- Bonds that finance credible green projects while remaining consistent with fiduciary considerations enable investors to incorporate environmental objectives into their investment strategies and, as such, are likely to attract increased investor interest.
- The Green Bond Principles (GBP) set forth appropriate common criteria concerning eligibility, disclosure, transparency and impact reporting for green bonds.
Moreover, it highlights areas, which would profit from further improvements, e.g.:
- Eligibility: General Criteria for Green Projects
- Initial Disclosures and Intended Use of Proceeds
- Reporting on Use of Proceeds and Project Impacts / Benefits
- Independent Assurance
Currently 27 investors back the Statement.
Carbon Pricing Statement of the World Bank
In 2014, Allianz Climate Solutions signed the Carbon Pricing Statement of the World Bank. It highlights the risks of climate change and calls for a stringent global carbon price to redirect investment commensurate with the scale of the climate challenge. Furthermore, it drives to enhance the sharing of expertise and lessons learned on developing and implementing carbon pricing.
Currently more than 270 companies and 35 governments back the Statement.
Global Investor Statement on Climate Change
In September 2014, 360 investors with USD 24 trillion assets under management published a statement, which shows possible contributions of asset managers to decarbonization and climate-resilient investments, such as policy support, low-carbon investments, climate risk assessment, and more.
Furthermore, it calls on governments to develop an ambitious global agreement on climate change by the end of 2015. This would give investors the confidence to support and accelerate the investments in low carbon technologies, in energy efficiency and in climate change adaptation.
Both Allianz Group and Allianz Global Investors signed the Statement.