Allianz Real Estate manages one of the world’s largest real estate portfolios. We consider it as a highest priority to fight global warming by reducing the carbon footprint of all of our assets.
A reduction of emissions in the real estate sector – which accounts for approximately 40%1 of global annual greenhouse gas emissions – will have a considerable impact on global decarbonization.
By the very nature of what we do – creating environments and communities where people work, live and spend their time – and as one of the largest investment managers in real estate, we see it as our responsibility to lead by example and reduce the carbon footprint of our portfolio and to encourage others in the industry to do the same.
Allianz Real Estate´s primary focus is on carbon emissions and energy efficiency but we also look at governance and social and wellbeing standards across the portfolio. We aim to direct capital into sustainable assets and solutions, both through new investments and by transforming our historic portfolio. Our activities target becoming aligned with the 1.5 °C decarbonization pathways for the global real estate sector as published by the Carbon Risk Real Estate Monitor (CRREM).
1IEA (2019), Global Status Report for Buildings and Construction 2019, IEA, Paris
"Our support for the low-carbon transition is steered by the true commitment to reach net-zero emissions by 2050. This is not yet another program to meet certain standards and adhere to best practice, but it is about concrete action starting now. It is about changing the carbon footprint of our portfolio and as such providing a measurable impact in the fight against global warming."
Raphael Mertens, Chief Risk Officer Allianz Real Estate
Our commitment to a low-carbon economy
Allianz Real Estate takes tangible steps to reduce its carbon footprint and develop healthy buildings for the environment and the communities that live and work in them.
Fight against global warming
Our highest priority is to reduce the carbon footprint of our portfolio. We want to own high quality, green and healthy buildings, meeting Allianz’s culture of being a responsible asset owner.
The most impactful part of our journey will be the evolution of our directly held equity assets which currently equate to half of our portfolio.
Carbon-neutral by 2050
We strive to incorporate sustainability factors into our investment cycle and work towards reducing the greenhouse gas emissions of our portfolio to net zero by 2050. The first milestone on this journey is to reduce the carbon footprint of Allianz Real Estate´s global portfolio by 25% by 2025 and we have a structured framework to reach this milestone.
These ambitions are line with the high-profile initiatives such as SBTi and Net-Zero Asset Owner Alliance that our ultimate parent company Allianz SE supports.
Engage with partners and tenants
Real estate is a people´s business and relationships are key. Recognizing the importance of climate change and the power of engagement, we make best use of our position, our size and scope. We aim to inspire and influence partners and tenants to follow our lead and take an active role to bring about change in strategy and behaviors.
Start with ourselves
Collaborating for a sustainable future must start from within. Allianz Real Estate strives to embed sustainability in all areas of its organization. Since 2020, we have been measuring the energy and paper consumption as well as business travel for each of our own office buildings.
"The sustainability journey will be long and complex involving hundreds of buildings in Europe, APAC and the U.S. as well as multiple stakeholders – investors, partners tenants and borrowers, and of course, Allianz Real Estate employees. But we will follow a global approach, no matter where the investment sits. We move forward with the implementation of our ambitious journey now, with great passion and a very dedicated team."
François Trausch, CEO Allianz Real Estate
Our ESG integration approach is broken down into these overarching themes:
ESG considerations are an integral part of our decision-making process. Our primary focus is on carbon emissions and energy efficiency, but we also look at governance and social and well-being standards. For the carbon emissions, we use CRREM data as scientific and independent approach. Under CRREM, our investments are analysed against the 1.5°C climate target, and emission pathways are defined for our decarbonisation targets.
Allianz Real Estate strives to embed sustainability in all areas of its organization. This includes measuring and reducing our consumption of resources such as electricity, water and paper, and travel policies to reduce our corporate carbon footprint.
Key to improving our portfolio is the decarbonization of our direct investments which equate to half of our investment portfolio. By improving the energy efficiency and replacing traditional energy sources with low-carbon alternatives we are transforming our buildings for the future.
We look to inspire and influence our partners and tenants to follow our lead and take an active role to bring about change. By promoting sustainable and environmentally friendly behaviors and services, by implementing them as an integral part of our processes and contracts, and by making the right joint decisions, together we can take tangible steps in the transition to a low-carbon economy.
The Allianz Real Estate ESG Group Policy has been developed as part of a joint project of Allianz Real Estate and Allianz Climate Solutions and incorporates the latest industry recommendations by the Finance Initiative of the United Nations Environment (UNEP FI) Framework for Sustainable Real Estate Investment and the G20 Financial Stability Board’s Task Force on Climate-Related Financial Disclosure (TCFD). It outlines our approach to integrating Environmental, Social, and Governance (ESG) considerations into the business processes throughout the investment cycle of the assets within Allianz Real Estate’s investment portfolio and applies to all investment business areas, including all Allianz Real Estate’s subsidiaries around the world.
• Allianz Real Estate acquires ‘smart’ office development in Berlin from EDGE for a joint venture between several Allianz group companies and Universal-Investment acting on behalf of German pension fund BVK
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