Allianz turns back on coal as returns evaporate
by Nicholas Comfort,
2015-11-24 11:42:48.0
FRANKFURT — Allianz is turning its back on coal as the returns from energy generation that is harmful to the environment evaporate.
Europe’s largest insurer plans to exit holdings in mining companies and utilities that derive more than 30% of their sales or power supply from the fossil fuel, chief investment officer Andreas Gruber told German television station ZDF in an interview.
Allianz will sell its shares in those companies in the next six months while holding their bonds until maturity, Mr Gruber said in an excerpt of the interview to be aired on Tuesday evening.
Companies that produce carbon dioxide, the gas blamed for climate change, face rising costs as governments charge them for emissions. The step by the German insurer comes ahead of the world climate summit in Paris, starting November 30, as Group of 20 nations gather to reach a global agreement on how to reduce fossil-fuel use.
"We want to support the talks at the climate summit in Paris in December, but also send a signal for our industry and for capital markets," Mr Gruber said.
Allianz has about €4bn of investments in companies with coal-intensive operations, ZDF reported, citing unidentified people familiar with the industry.
The insurer has invested about €2bn in wind power and plans to double that figure in coming years, Mr Gruber said, adding that Allianz expects to generate a return of 5% to 6% for its clients from this source, according to ZDF.
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Picture: SUNDAY TIMES
FRANKFURT — Allianz is turning its back on coal as the returns from energy generation that is harmful to the environment evaporate.
Europe’s largest insurer plans to exit holdings in mining companies and utilities that derive more than 30% of their sales or power supply from the fossil fuel, chief investment officer Andreas Gruber told German television station ZDF in an interview.
Allianz will sell its shares in those companies in the next six months while holding their bonds until maturity, Mr Gruber said in an excerpt of the interview to be aired on Tuesday evening.
Companies that produce carbon dioxide, the gas blamed for climate change, face rising costs as governments charge them for emissions. The step by the German insurer comes ahead of the world climate summit in Paris, starting November 30, as Group of 20 nations gather to reach a global agreement on how to reduce fossil-fuel use.
"We want to support the talks at the climate summit in Paris in December, but also send a signal for our industry and for capital markets," Mr Gruber said.
Allianz has about €4bn of investments in companies with coal-intensive operations, ZDF reported, citing unidentified people familiar with the industry.
The insurer has invested about €2bn in wind power and plans to double that figure in coming years, Mr Gruber said, adding that Allianz expects to generate a return of 5% to 6% for its clients from this source, according to ZDF.
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