Our decarbonization strategy
Our strategy aims at being progressively aligned with the Net Zero target set by the Allianz Group. To meet these targets, we’re reducing our greenhouse gas (GHG) emissions across Scopes 1, 2 and 3 by implementing action plans tailored to the different types of emissions.
Our emissions fall under Scopes 1, 2 and 3 as follows:
- Scope 1 emissions are generated from the use of assets we own, such as company vehicles
- Scope 2 covers emissions from electricity consumption in our offices, such as heating, lighting or cloud storage
- Scope 3 emissions result from the use of assets and services we don’t own, such as non company vehicles used for business travel or commuting, cloud and IT services, office supplies and equipment we purchase, and our financial products once sold to clients
To illustrate the difference between Scopes 1 and 3 when it comes to our operations, take our emissions related to business travel: if an employee rents a car to see a client, the emissions generated to go to this meeting are counted as Scope 3. However, if the car is part of Allianz Trade’s own fleet of vehicles, the emissions fall under Scope 1. Emissions related to air travel also fall under Scope 3, as Allianz Trade doesn’t own any airplanes. Our near-term target for all our operational emissions is a 65% reduction by 2030.
In order to understand our strategy, it’s important to understand the nature of our emissions. Beyond our operational emissions, the majority of our emissions comes from our commercial portfolio, because of our role as a service provider. These emissions are produced by the activities of the clients partnered with Allianz Trade, and are counted under Scope 3. We aim to reduce these by encouraging our clients to accelerate their transitions and by increasing our exposure to the most sustainable sectors.
How we drive change and measure progress
We work with our regional offices and ensure they are empowered to take action, track data and share the responsibility of emissions reduction. We also use frameworks and standards tailored to our business.
When it comes to emissions from our commercial portfolio, these are both higher than our operational emissions and harder to measure. To accurately gauge progress, we have adopted the standards set by the Partnership for Carbon Accounting Financials (PCAF). They help us deploy techniques to calculate all our clients’ carbon footprints. Once we determined the carbon footprint of each client, we’re able to find the weighted average carbon intensity of our commercial portfolio – in other words, how big a portion of each client’s emissions we’re responsible for, based on account size. We use the total number as an indicator to measure our continued progress toward decarbonization.
Within our operational emissions, we’ve already reached the target of 100% of our electricity coming from renewable sources. Now, we’re doubling down on our Scope 1 and 3 emissions – especially those linked to business travel – as we bring emissions under our control down to a minimum, while ensuring our teams can still carry out their work. For example, we’ve implemented a carbon budget for air travel, with each of our regions receiving an allocated amount of air travel they can use in a year. By capping this type of transit, we reduce emissions while allowing our teams to do the work they need to. For cars, we’re moving towards a 100% green fleet, made up exclusively of electric vehicles (EVs), in our six biggest regional offices. These represent 76% of our workforce.
Progress is closely monitored on a local level: in each of these six reporting locations, a dedicated team member collects and shares emissions data with an environmental officer. These officers are responsible for gathering and verifying the quality of the data relating to our different KPIs, such as electricity use and kilometers driven by the car fleet. We also have a non-financial data coordinator within our financial department, and our Global Sustainability Office (GSO) is responsible for reporting on environmental aspects. Allianz’s ambition is to be as strong in its non-financial reporting as in traditional financial reporting, and at Allianz Trade, we dedicate ourselves to making this goal a reality every day.
Working together to reduce our emissions
Sustainability is everyone’s responsibility – from individual employees to business leaders. We make sure everyone across the company contributes to our overall emissions reduction targets however they can. This includes communicating our targets and strategies clearly, and incentivizing behavioral change wherever possible.
At Allianz Trade, sustainability is part of decision-making across the organization, and a consideration in our work with clients. The only way we can reach our Net Zero goals is by working together. We’re proud of the progress we’ve made so far and are working hard to keep our momentum going.
