Allianz Australia has become the first insurer to join Climate League 2030, a private sector-focused 10-year initiative that aims to reduce the country’s annual greenhouse gas emissions in line with targets set by the Paris Agreement.

The Investor Group on Climate Change (IGCC) launched the initiative in October last year, starting with investor participants.

IGCC is a collaboration of Australian and New Zealand investors focusing on the financial impact of climate change on investments.

Supporting Climate 2030 means Allianz must commit to taking at least one new action each year that will make a demonstrable contribution to reducing Australian emissions.

Allianz Australia MD Richard Feledy says the busines is “proud” to be the first insurer to join the initiative.

“Allianz is committed to a net-zero emissions future and we are decarbonising our operations, insurance portfolio and investments to help us achieve that goal,” Mr Feledy said.

“We believe climate risks are better mitigated when we collaborate with other organisations, industries and markets.

“By joining initiatives such as Climate League, we hope to enable an orderly transition.”

IGCC CEO Rebecca Mikula-Wright says “hopefully” more insurers will follow in the footsteps of Allianz and join the climate initiative.

“More and more investors, banks and insurers are now recognising that reducing emissions on a Paris-aligned pathway represents responsible action to secure a healthy economy for Australia,” she said.

“The Investor Group on Climate Change continues to support other organisations, including hopefully more insurance firms, to join Climate League to support a stronger 2030 national emissions reduction commitment, which will remain in focus in the lead up to COP27 in Egypt next year.”

Allianz has already announced changes to reduce the insurer’s ties with fossil fuels. The insurer is removing thermal coal from proprietary investment and underwriting portfolios and this year ceased insuring or investing in infrastructure facilities that derive more than half their revenue from thermal coal.

From 2023 the business will no longer provide property & casualty insurance or make proprietary investments in companies that plan new coal mines, generate more than 25% of revenue from thermal coal mining, or produce more than 10 million tons of thermal coal annually.