German insurance group Allianz has committed to achieving net-zero greenhouse gas (GHG) emission targets by 2030 as part of its climate strategy.
From 1 January 2023, the insurer will stop investing in and issuing new single-site and stand-alone P&C insurance coverages.
It will also stop renewing existing contracts from of 1 July 2023.
The restrictions cover risks associated with activities such as exploration and development of new upstream oil and gas fields, oil and gas activities related to the Arctic and the Antarctic, extra-heavy oil and ultra-deep-sea risks.
For company-level insurance coverage and investment, Allianz will require firms operating in this space to have “a robust ‘net-zero by 2050’ commitment”.
Concurrently, Allianz said it will no provide insurance, facultative reinsurance or funding to firms with over 10% of their revenue coming from oil sands.
The announcement comes after the International Energy Agency published a report stating that all new investments in fossil fuels must be stopped to achieve net zero by 2050.
Allianz SE management board member Günther Thallinger said: “With these new guidelines, Allianz is strengthening its promise to contribute to an orderly decarbonization of the economy.”
Notably, Allianz is one of the founding members of the Net-Zero Insurance (NZIA) Alliance.
In March 2022, Swiss Re, also an NZIA member, announced a full phase-out of thermal coal exposure in OCED countries by 2030 and the rest of the world by 2040.