Climate change, mainly caused by human-activity induced global warming, poses a major risk to the livelihoods of millions of people worldwide. It affects the wealth of societies and the value of companies. The consequences of climate change materially affect insurers’ operations across all lines of business. We are exposed in two ways: through insurance policies covering damage caused by natural disasters such as storms and floods; and as large-scale institutional investors with significant stakes in companies affected by changing weather patterns, tightening regulation and shifting consumer behavior.
At the same time, the unprecedented challenge of climate change creates opportunities and incentives for the development of new technologies on a global scale that drive economic development and generate social benefits. At Allianz, we encourage solutions for tomorrow’s climate today, by working with others to understand the science, develop opportunities and mitigate impacts. We anticipate the risks of climate change and protect and care for our customers through our insurance products, while using our assets and insurance expertise to enable the transition to a low-carbon economy.
We are committed to taking a leading role in tackling the climate challenge. This means managing emissions from our operations, as a carbon-neutral company, and using our leverage as one of the world’s largest institutional investors and insurers.
For more information on what we are doing to help mitigate and respond to climate change, see our full-length article in Sustainability Report 2016 on page 13 and our climate change strategy.