Allianz Real Estate, the real estate investment management arm of the Allianz Group and one of the world’s largest investors in real estate, is targeting a reduction in carbon emissions from its global portfolio of 25% by 2025 as part of its global sustainability programme, initiated in 2019, that aims to be carbon net-zero by 2050.
To help meet its carbon emissions and energy efficiency targets, Allianz Real Estate is using independent Carbon Risk Real Estate Monitor (CRREM) and GRESB (Global Real Estate Sustainability Benchmark) data and benchmarking tools to underpin its sustainability programme. This means that investments are analyzed and reported against CRREM’s decarbonization pathways, which are also aligned with the Paris climate agreement goal of limiting global temperature rise to 2 degrees Celsius, with ambition towards 1.5 degrees.
The global programme is also in line with a number of high-profile initiatives like the Science Based Targets initiative (SBTi) and the Net-Zero Asset Owner Alliance (AOA), which is also using CRREM. The programme is also compliant with European Union taxonomy requirements, a classification system of sustainable economic activities.
“A reduction of emissions in the real estate sector – which accounts for approximately 40% of global greenhouse gas emissions – will have a considerable impact on global decarbonization,” says Raphael Mertens, chief risk officer at Allianz Real Estate. “Our position, size and influence allows us to lead by example. As such, we have developed one of the most ambitious and comprehensive sustainability and ESG [environmental, social and governance] transformation programmes in the real estate sector. For some time now, our acquisition process has ensured high standards of sustainability for new direct assets.”