Allianz Global Investors (AllianzGI) has released its first coal policy. While implementing a coal policy was an important first step for the asset manager, the policy does not meet the standards needed for effective coal exclusion.
“It is good that Allianz Global Investors finally released its first coal policy. This was long overdue, since Allianz‘ existing coal policy doesn't apply to AllianzGI. However, the policy is far from meeting the level of ambition we need to see in the year 2021. The threshold of 30% for coal share of revenue or electricity production is simply too high. The policy also lacks absolute thresholds, which creates serious loopholes. Europe’s largest CO2 emitter RWE is now below the 30% threshold for revenue and power production. However, the utility still holds over 10 gigawatts of installed coal power capacity and mined over 50 million tons of coal in 2020. Equally gigantic coal producers like Glencore, Anglo American or BHP Billiton fall comfortably below the 30% threshold while being major climate wreckers. The policy foresees regular reviews, so the next update must include an absolute threshold if Allianz Global Investors want to be taken seriously in its climate protection efforts."
“The fact that Allianz GI adopted a first coal policy is a welcome development for such a big asset manager, but its content remains highly insufficient to contribute to the climate objectives of the Paris Agreement. This policy is indeed similar to the one adopted first by Allianz for its own investments back in 2015, just before COP21, 6 years ago. The climate urgency has since then only increased, and Allianz GI must quickly catch up with the rest of its group or even better with AXA IM to have a robust, impactful coal policy, starting with the immediate exclusion of all coal developers."