The world’s attention has rightly been focused on COP27 and how policymakers and global leaders find and finance solutions to our overheating planet. This year, the debate focused on the issue of “loss and damage” – money paid by developed nations, historically the worst polluters, to help poorer nations on the frontlines of the climate crisis recover from social and economic losses, ranging from catastrophic flood damage to draught-ravaged crops to species extension.

Less prominent in these global climate discussions is the voice of business leaders in emerging and developing nations, particularly those in the global South. A recent survey entitled “Sustainability-Readiness of Business Leaders in Emerging Markets,“ by Allianz seeks to fill this gap by surveying the experiences and sentiments of emerging markets private sector leaders on the state of climate resilience at their organizations. Allianz canvassed C-level managers of mid- to large businesses operating in 14 emerging markets (EMs) across Asia, Africa and Latin America, including local heads of multi-national corporations.

“As a global insurer and a responsible investor and asset manager, Allianz embeds sustainability in our core business to manage risks and capture opportunities – and so do many of our corporate customers. Partnering with our clients in their transition to climate-resilient business models, we wanted to better understand the needs of business leaders in emerging market countries that are most exposed to the risks presented by climate change,” says Christopher Townsend, Member of the Board of Management of Allianz SE. 

While shifting to renewable energy and adaptation to physical risks is considered a key task, to date, only 23% of EM business leaders have a net-zero-target in place, while 48% are planning to develop targets in the near future. 

Overall, respondents acknowledge needing support and feel that the responsibility to foster sustainability is a collective one, notably attributing an important role to international companies. The majority see multinational companies (87%), investors (85%), international organisations (85%) and insurers (84%) as positive drivers for more climate protection and social progress. 

Insurers are seen as an ally. Two-thirds of business leaders surveyed feel insurance is important to support organizations with climate change adaption and mitigation (67%) and a real partner in helping businesses be more sustainable (63%). Insurers are expected to apply their services and expertise to provide solutions. Over half think insurers are ahead of regulations when it comes to implementing sustainable business practices (e.g., incentivizing positive behaviours through lower premiums). The EM C-Suite seeks insurers’ support, especially through coverage of small-scale projects (renewables, heating systems, etc.); innovative solutions to tackle social challenges (micro-insurance) and faster claims management in case of natural catastrophes. (See “Related Content” below)   

When it comes to the major drivers of economic growth in emerging countries, Delphine Traoré, Chief Executive Officer of Allianz Africa, believes insurance is often overlooked, despite its role in improving financial stability and mitigating risks. “Expanding Africa’s insurance market and leveraging our industry’s deep climate expertise,” she says, “can facilitate progress towards sustainable business models and generate greater shared prosperity in the region.”