Press release -
Allianz launches sustainable procurement charter
Allianz Insurance has launched a sustainable procurement charter to encourage its suppliers to adopt and develop sound Environmental, Social and Governance (ESG) practices.
For future tender assessments, the commercial insurer will apply a minimum weighting of 10% to ESG factors, as a way of prioritising suppliers who have embedded sustainable and ethical practices within their organisation.
Allianz will also provide support and education to suppliers who are invested in ESG. The insurer wants to partner with suppliers who understand the nature of the materials, products and services they’re providing and the importance of protecting the environment and fostering good relations with their employees and their local communities.
Allianz has significantly reduced the environmental impact of its operations in the UK. Between 2010 and 2020, it cut its waste by 89%, its CO2 emissions by 79%, its paper consumption by 61% and its water consumption by 29%. The sustainable procurement charter will help it further reduce its climate footprint.
With this charter, Allianz aims to encourage suppliers to reduce carbon emissions, recycle waste, use renewable energy and consider biodiversity elements for their premises. Besides these environmental commitments, it would like suppliers to set themselves social targets, such as paying all employees the national living wage, reducing pay gaps and providing fair opportunities to everyone. In terms of governance goals, it encourages them to set whistleblowing mechanisms into their business practices and to ensure all tendering activities are open and transparent. While these targets aren’t binding, suppliers are encouraged to embed them in their operations and supply chain, ensuring ESG is a core consideration. They should be able to track their own performance in a reportable format, which could then be used to drive better outcomes.
The sustainable procurement charter is designed for suppliers who have a contractual relationship with Allianz in the UK and have a spend profile of more than £20,000. It will act as guidance for internal buyers and suppliers.
Oleh Melnyk, head of procurement and property at Allianz Insurance, commented: “We need to act against climate change and we can’t act alone, we need to involve our supplier partners. This charter will help develop a shared mindset with them, creating a fairer and more transparent environment. We want to be market leaders in sustainable procurement; that’s part of our ESG ambitions.”
To make its own operations more sustainable, Allianz Insurance takes a wide array of measures, from using recycled stationery to maintaining a fleet of hybrid cars. When it closed its Liphook site, it donated the office furniture and equipment to charities for recycling and when choosing a new Manchester hub, it opted for a sustainable building. Allianz also favours repairs over replacement in property claims and supports the use of green parts in vehicle repairs.
At Group level, Allianz is part of the Net-Zero Owner Alliance and the Net-Zero Insurance Alliance, UN-convened initiatives that will see investors and insurers shift their portfolios and activities to net-zero greenhouse gas emissions by 2050.
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About Allianz Holdings plc
Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain including Allianz Insurance plc.
About Allianz Group
The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 790 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage 1.7 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.
*Including non-consolidated entities with Allianz customers
These assessments are, as always, subject to the disclaimer provided below.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
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The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.
