"Climate change could hit harder than financial crisis"

In the run-up to the upcoming UN climate summit in Cancun, business leaders are asking governments and policymakers to deliver significant progress in CO2 reduction. The appeal is repeated annually, based on the lack of progress of both the world's major industrial powers and the emerging countries in the race against global warming.

"As an insurer, we are the frontline industry to feel the heat of a changing climate," explains Allianz board member Joachim Faber. "In our global industry insurance business alone, 40 percent of damages are due to storms and floods. Also, for our asset management entities, we have to watch rising temperatures. Governmental climate policies affect the value of companies and hence influence our investment decisions."

Exactly 259 investors signed the statement _blank , who together represent combined assets under management worth over 15 trillion US dollars. This figure is equivalent to the annual GDP of the United States, or to more than one-quarter of the world's total market capitalization.

"What is needed are binding worldwide targets for carbon emissions," says Armin Sandhoevel, CEO of Allianz Climate Solutions. "To reduce CO2 emissions governments have to provide clear and predictable climate policies for the private sector to become active. Otherwise we'll inevitably see devastating impacts on the environment and society that will cause enormous costs for the global economy in the long run. Politicians need to take action, before it's too late," warns Sandhoevel.