Engagement with Allianz on fossil fuel projects

We have engaged with the insurance provider, Allianz, for three years on its role in financing new
fossil fuel projects. This year, we received a comprehensive response from the company on its commitments to decarbonisation. This was reinforced by independent research suggesting that Allianz leads its insurance peers in terms of climate and biodiversity policies.

For the past few years, we have used our shareholder voting rights to express our dissatisfaction with the small number of financial services companies in our funds that continue to offer lending and insurance to new fossil fuel projects. 

We have engaged annually with Allianz, an insurer and asset manager, for the past three years in the run up to the company’s Annual General Meeting (AGM). This year, we received a comprehensive response from the company on its commitments to reduce its fossil fuel exposure. Allianz stated that it:

• Does not directly invest in or insure standalone/single-site risks for the construction and/or operation of any coal-based infrastructure, such as coal power plants, coal mines, coal-related railways or coal ports.  
• No longer finances or insures standalone/single-site risks for new oil and gas fields, new oil infrastructure and power plants, or oil and gas activities related to the Arctic and Antarctic, oil sands, coalbed methane, extra-heavy oil and ultra-deepwater.

Allianz continues to have commercial relations with these sectors, but has put in place some restrictions to limit business transactions with the worst offenders. For example, Allianz expects large oil and gas clients to have a science-based 1.5° aligned commitment to net-zero by 2050 across scopes 1, 2, and 3 greenhouse gas emissions. 

The robustness of these commitments is backed up by new analysis published by ShareAction, which ranks Allianz as the most progressive of 30 global insurance firms for its policies on climate, biodiversity and social impact.

The robustness of these commitments is backed up by new analysis published by ShareAction, which ranks Allianz as the most progressive of 30 global insurance firms for its policies on climate, biodiversity and social impact. This provides some reassurance to us, although we acknowledge that there are significant improvements Allianz can and should make in these areas.

Separately, Allianz was also keen to point out its role in providing support for the renewables industry. It is currently insuring wind farm projects in over 70 countries and its investment portfolio includes over 100 wind farms. 

Our engagement, coupled with ShareAction’s research, paints a picture of a company in transition.

Outcome: Our engagement, coupled with ShareAction’s research, paints a picture of a company in transition. We are pleased to see the existing commitments avoiding support for new single-site oil, gas or coal projects. However, questions remain about how Allianz treats extensions of existing sites. We will continue to monitor the situation and apply pressure where possible. 

Written by Ita McMahon

This article was originally published as part of our Q2 2026 Investment Management Report (IMR).

Information is accurate as at 17.07.2026. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.