Paul Steele: The financial sector has a huge responsibility regarding climate change. Investment, lending and insurance decisions for energy and infrastructure projects will define whether CO2 emissions increase in the future or whether we will be successful in reducing them, thereby avoiding the more severe impacts of climate change.
We want to work with Allianz and its clients to understand how climate change will affect their sectors and their businesses, so that they can take timely action. Not only will climate change have an impact on many companies in real money terms, but most importantly, financial companies must play a major role in triggering the switch from old technologies that pollute the environment to clean energy.
WWF and Allianz team up to combat climate change
WWF and Allianz are working together to identify risks and opportunities from climate change for the financial sector. On June 28, they will present their findings at a press event in London. Allianz.com News talked to Paul Steele, Chief Operating Officer of WWF, about the cooperation.
Paul Steele: "The financial sector has a huge responsibility regarding climate change"
Allianz.com News: WWF is an independent organization for environmental conservation. Why are you working with Allianz to combat climate change?
? In general, what are the risks of climate change and what is the main cause?
Steele: We are already witnessing climate change all over the planet. Our energy use, specifically how we are burning fossil fuels – coal, oil and gas is the main cause. We have now reached a global temperature increase of 0.7 degrees Celsius. Even this small figure is leading to negative impacts. Extreme weather events are increasing, impacting our economies. Ecosystems are changing; dying coral reefs, droughts and floods are examples.
Also, glaciers are melting in all the major mountain ranges. In the Himalayas, glacier water feeds the major rivers of eastern Asia – including the Indus River in India and the Yellow River in China. Glacier water is crucial for these rivers in the dry season – once those glaciers are gone, up to two billion people will feel a serious lack of water.
Also, glaciers are melting in all the major mountain ranges. In the Himalayas, glacier water feeds the major rivers of eastern Asia – including the Indus River in India and the Yellow River in China. Glacier water is crucial for these rivers in the dry season – once those glaciers are gone, up to two billion people will feel a serious lack of water.
Water spouts like this one could become more frequent with climate change
Photo: WWF
? And how will climate change affect business and everyday life?
Steele: Climate change is already impacting the economy and businesses. This is true in rich countries as much as in poorer ones: for example, a ski resort in Andermatt, Switzerland is worried about glacier melt because that threatens its extended ski season business. Insurers are concerned about how a potential rise in natural catastrophes due to global warming could affect their property and casualty business.
? What is the way forward?
Steele: We need to change how we produce and use energy. That means that we need to switch our power supply to renewable energies like wind, biomass, geothermal and the sun.
And we need to become a lot smarter about how we use energy. Today, we are wasting energy because we are not aware of the huge efficiency savings potential. In the EU alone we could reduce CO2 emissions by 15 percent in the next 15 years, just by using technologies which are proven and cost-effective.
Some still think that this is all science fiction. Indeed, many innovations were first formulated as science fiction, but the difference here is that we are already at a stage where these new technologies can start to impact the market. And this is where Allianz and its peers can help - by funding research, influencing investments, and helping companies to manage risks with insurance.
And we need to become a lot smarter about how we use energy. Today, we are wasting energy because we are not aware of the huge efficiency savings potential. In the EU alone we could reduce CO2 emissions by 15 percent in the next 15 years, just by using technologies which are proven and cost-effective.
Some still think that this is all science fiction. Indeed, many innovations were first formulated as science fiction, but the difference here is that we are already at a stage where these new technologies can start to impact the market. And this is where Allianz and its peers can help - by funding research, influencing investments, and helping companies to manage risks with insurance.
"Climate Change & the Financial Industry - An Agenda for Action"
Allianz and WWF have conducted a study on climate change and its implications for the financial sector. They will present their findings at a press briefing on June 28 in London. The study and further press materials will be published on June 29 on www.allianz.com.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
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