Allianz unveils initial specifics of its fresh approach

Allianz Unveils Three-Year Sustainability Strategy

Allianz, the German financial services provider, has announced a new three-year strategy, set to run from the following year until 2024. The strategy, to be presented on December 3, will focus on sustainability themes, including old-age provision, healthcare, and affordable housing.

Allianz CEO Oliver Bate has been vocal about the importance of sustainability in the new strategy. He has been working on a proposal for two years on how to make affordable housing possible in Germany. Bate believes that the costs of the green transition are often underestimated and require massive private capital.

The organization's focus on sustainability is not surprising, given Bate's identification of three central challenges as essential for society: pension provision, housing, and sustainability. Previous strategy plans by Bate were primarily characterized by financial goals. However, this new approach signifies a shift towards a more holistic and socially responsible approach.

The new strategy will include specific targets for customer satisfaction and employee leadership. Bate emphasized the importance of thinking about succession early on, stating that there are multiple potential successors for top positions at Allianz. He has hinted at his succession, suggesting it could be a techie, a successor, or both.

Bate finds the recent election campaign "incredibly frustrating" due to the lack of discussion on important topics like rising inflation and record spending on social issues. He believes that important discussions about the green transition and its costs should have been part of the election campaign. Instead, the election campaign focused mainly on personalities.

The German economy heavily depends on a strong industry, and mistakes in the energy transition could lead to an economic crisis. Bate states that the costs of the green transition are often underestimated and require massive private capital. There is no regulatory concept for the financing of the green transition, and the Allianz is willing to participate in its design but has not yet had any exchange of thoughts with politics.

Despite the challenges, Bate is optimistic about the future. He believes that the entire business model of Germany is at stake due to the energy transition, but he also sees it as an opportunity for innovation and growth. The new strategy is a step towards a more sustainable and resilient future for Allianz and Germany as a whole.