Allianz, an international financial services provider, marked the publication of the report "Climate Change & the Financial Sector: An Agenda for Action" with a pledge to grow investments in renewable energies by 300 to 500 million euros over the next five years.

The report outlines specific steps for actions to better integrate risks from climate change into the insurance, banking and asset management business.

"Climate change creates significant costs for the financial industry," says Joachim Faber, Allianz AG Board Member and CEO of Allianz's asset management arm, Allianz Global Investors. "In the interest of our clients and shareholders we are obligated to take these risks into account when making decisions on insurance underwriting, investments or lending credit."

To tackle climate change risks more strategically, Allianz will address the issue at board level and examine carbon risks in banking, asset management and insurance.

Allianz has commissioned a "Climate Core Group" headed by Otto Steinmetz, Chief Risk Officer of Dresdner Bank. The banking arm of Allianz Group and its investment bank Dresdner Kleinwort Wasserstein are frontrunners in climate related business areas such as emissions trading.

"The financial industry plays a pivotal role in helping to mitigate the effects of climate change and steer the world towards clean energy", says Robert Napier, Chief Executive of WWF UK. "WWF and Allianz want to cooperate further to develop new tools for climate risk assessment, and show how leading financial companies can help manage the transition to a clean energy economy."

Allianz has commissioned a "Climate Core Group" headed by Otto Steinmetz, Chief Risk Officer of Dresdner Bank. The banking arm of Allianz Group and its investment bank Dresdner Kleinwort Wasserstein are frontrunners in climate related business areas such as emissions trading.

Allianz as an insurance provider expects that insurance premiums may rise to cover the risks associated with climate change. "We agree with scientists who say that while natural catastrophes can not be conclusively linked to climate change, the severity and frequency of natural disasters have increased as a result of a changing climate," says Andrew Torrance, CEO of Allianz Cornhill, the UK-based insurance subsidiary.

"For our insurance business, climate change is increasing the potential of property damage at a rate of 2 to 4 percent per year. In some cases this might result in property damage premium rises in some markets as insurers adjust their risk-based insurance cost models to reflect the increasing severity of climate change events."

Addressing world leaders who are attending the G8 summit in Scotland next week, Allianz and WWF call for a clearer policy framework to adjust long-term investments and credit lending for banks and investors accordingly. "As an investor we need greater political and regulatory security, therefore we need a clear policy framework on climate change especially with regard to the post-2012 Emission Trading Scheme allocations,"
says Joachim Faber.

"Businesses need to play their part but they rely on a stable and clear political direction," says Robert Napier. "The G8 leaders must come up with a clear plan of action to combat dangerous climate change. They must ensure that the G8 sends a clear signal that emissions will be cut and carbon markets will continue long into the future."

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