Allianz oil and gas exit policy welcomed
Insurance giant’s climate commitment ‘raises the bar’ for the insurance industry, campaigners say and call on other insurers to follow suit
Campaigners have welcomed pledges made by Allianz to adopt an ambitious oil and gas exit policy.
The German insurance giant has committed to stop insuring and investing in new oil and gas fields, new oil power plants, new midstream oil infrastructure and practices relating to the Arctic as of January 2023. In addition, it will not renew existing contracts for such projects as of July 1, 2023.
Climate group Insure Our Future said Allianz’s commitment “raises the bar” for the insurance industry, and it called on other insurers to follow suit.
“As one of the world’s largest insurance companies and a major oil and gas insurer, Allianz has sent a clear signal to the oil and gas sector and governments that new oil and gas developments are not compatible with the 1.5°C climate target,” Lindsay Keenan, European coordinator of Insure Our Future, said.
Allianz is the 10th major insurance company to adopt oil and gas restrictions, following recent policies from Swiss Re and Hannover Re.
Campaigners said there is now “real momentum” for all insurance companies to adopt oil and gas policies that align with climate science.
Allianz’s policy goes “significantly further” than policies announced by Axa and Zurich last year, which allow “continued insurance of plenty of new oil and gas projects”, Lucie Pinson, founder and director of Reclaim Finance, said.
“Axa and Zurich must take note of the significant gaps in their policies and act in line with their net zero commitments,” Pinson added.
Campaigners also urged Munich Re to stop insuring new oil and gas projects.
Earlier this month, Munich Re became the latest company to refuse to cover the East African Crude Oil Pipeline, joining Hannover Re, Scor, Swiss Re, Axa and Zurich in publicly committing not to underwrite the pipeline.
In March Swiss Re unveiled an enhanced oil and gas policy, which commits its shift away from the most carbon-intensive oil and gas production.
From July 2023, the reinsurance giant will no longer provide individual insurance covers for oil and gas companies that are responsible for the world’s 10% most carbon-intensive oil and gas production.