As a corporate insurer and investor, we have developed a human rights due diligence process as part of our overall ESG approach. This process is integrated into our broader risk management system to ensure a quick and rigorous implementation. For our due diligence we use a combination of a sector- and country approach. Allianz has developed thirteen ESG guidelines for sensitive business sectors, which include a sector-specific human rights guideline. Thus, relevant human rights aspects are checked as part of the overall risk assessment for any insurance and investments into non-listed asset classes in the respective sector.
In addition, Allianz has developed a watch list for sensitive countries where systematic human rights violations occur. For any business in those countries, a general human rights guideline is being applied.
When a human rights risk is identified by an underwriter or investment manager by applying the sector guideline or the overall human rights guideline, a mandatory referral process starts for further due diligence by ESG experts and the involvement of central units such as the risk and communication departments. Where an issue is detected and the (re)insurer has leverage (in a lead position or with good contact with the client/broker/ investee company), engagement is encouraged to address and mitigate the human rights risk.
If no mitigation measures exist or if leverage cannot be increased, the risk might be unacceptable. Factors which may influence this decision include the severity of the human rights violation, the significance of the business relationship as well as own values.
Some of the risks Allianz has identified as most critical to its business are:
- Governance risks
- Risks to local communities
- Reputational risks
- Resettlement risks
- Workforce risks
Based on our internal due diligence assessments, Allianz Group is not aware of any direct negative impacts to human rights of any stakeholder, which required us to make remedy or mitigate under any UN guidance. We proactively and continuously review our impacts taking steps as set out in the Allianz ESG Integration Framework.