Allianz has joined Climate League 2030, becoming the first insurer in Australia to support the 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.

Joining the initiative means Allianz, like other participants, must commit to taking at least one new action each year that will make a demonstrable contribution to reducing Australian emissions.

“Allianz is proud to be the first insurer to join Climate League 2030, a coalition of investors and businesses supporting and acting towards deeper Australian emissions cuts and clear climate policies,” Allianz Australia MD Richard Feledy said in a statement to insuranceNEWS.com.au.

“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.

“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.

“Climate League 2030 aims to bring organisations across financial markets to pledge support and take action to help reduce Australia’s emissions by at least 45% below 2005 levels by the end of the decade,” she told insuranceNEWS.com.au.

“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.

“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, like most major European insurers and reinsurers, is leading the industry’s push away from fossil fuels in support of the global transition towards renewable energy.

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.

The policy will also apply to companies that have more than 5000 megawatts of installed coal generation capacity, build new coal-fired power plants, or generate more than 25% of revenue from coal annually as well as those that earn at least 25% of revenue through providing services such as maintenance, repair or construction to a coal mine or electricity generation.