Climate Change and the Financial Industry: An Agenda for Action
This presentation is the property of its rightful owner.
Sponsored Links
1 / 13

Climate Change and the Financial Industry: An Agenda for Action Michael Anthony, Allianz SE PowerPoint PPT Presentation


  • 81 Views
  • Uploaded on
  • Presentation posted in: General

Climate Change and the Financial Industry: An Agenda for Action Michael Anthony, Allianz SE March, 2007. Index of Slides. Facts on Climate Change Allianz Response: Knowing and Understanding the risks Allianz Response: Managing the risks and capturing the opportunities.

Download Presentation

Climate Change and the Financial Industry: An Agenda for Action Michael Anthony, Allianz SE

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Climate change and the financial industry an agenda for action michael anthony allianz se

Climate Change and the Financial Industry: An Agenda for Action

Michael Anthony, Allianz SE

March, 2007


Climate change and the financial industry an agenda for action michael anthony allianz se

Index of Slides

Facts on Climate Change

Allianz Response: Knowing and Understanding the risks

Allianz Response: Managing the risks and capturing the opportunities


Allianz responses knowing and understanding the risks

Allianz Responses: Knowing and Understanding the risks

Commitment

"The insurance industry has always played a key role in helping business and society understand new risks. We provide an early warning, if you will. Allianz believes it is already seeing signs that climate change is a serious emerging risk, and we expect it to remain a top-tier issue for the insurance industry for many decades to come.”

- Clement Booth, Allianz SE board member

“Many customers still perceive climate change issues as being relevant to Socially Responsible Investment only. However, as asset managers, it is our duty to look at all risks that may be impacting our client’s investments. In the end, carbon risk will be a market risk. So we must balance the short term with the long term risks. Climate change is no exception.”

- Joachim Faber, Allianz SE board member and CEO of Allianz Global Investors


1 about allianz

1. About Allianz

Leveraging our Products, Services and Global Reach

  • Allianz is a leading global financial services provider, present in more than 70 countries with more than 170,000 employees.

  • The international group is led by the holding company, Allianz SE (Munich).

  • Allianz serves more than 60 million customers worldwide, with comprehensive range of products and services across 3 business lines

    • Insurance

    • Banking

    • Asset Management

  • We think our global reach and our ability to provide integrated financial solutions that enable the transition towards a low carbon economy position us centrally to tackle rising global calls for climate action.


Allianz responses from awareness

Allianz Responses from Awareness

Awareness to Action

  • Successful & expanding climate response…

Jan. ‘05

June ‘05

Oct. ‘05

Jan. ‘06

May. ‘06

March. ‘07

Allianz & WWF team up to analyze climate risks in Allianz’s business

Allianz & WWF publish “Climate Change & the Financial Sector: An Agenda for Action”

Allianz Climate Core Group established to coordinate emerging Group climate activities

Allianz Group Climate Strategy to prioritize and focus developing Group response to climate risks / opportunities

80 point Climate Action Plan assigns responsibility & timeframes to implement Climate Strategy

Allianz Austria launches climate friendly car insurance scheme

From Awareness to Action…

Catalyst


Allianz responses knowing and understanding the risks1

Allianz Responses: Knowing and Understanding the risks

Research

  • Allianz & the Worldwide Fund for Nature (WWF) have partnered to transform the financial sectors response to climate change.

  • Published “Climate Change & the Financial Sector: An Agenda for Action” in 2005.

    • Published “Climate Change & Insurance: An Agenda for Action” in 2006

  • Upcoming June 2007 report “The Geopolitics of Climate Change” will look at the implication of climate change in Europe's neighboring countries.

  • Upcoming sector analysis, will examine the costs of climate change for different industries in Europe.


Allianz responses knowing and understanding the risks2

Allianz Responses: Knowing and Understanding the risks

Research

  • Key results from Allianz/WWF reports in 2005 & 2006

    • Financial Industry needs to systematically screen climate risks.

    • Extent and frequency of natural catastrophes will increase with warming climate - a substantial risk to the insurance sector.

    • Proactive companies can reduce risks and capture new opportunities like services for carbon trading markets.

    • Financial industry plays a pivotal role in mitigating climate risks and transitioning to a clean energy, low carbon world.

    • The financial industry needs to better address the growing impacts of climate induced damages. Insurance needs to find ways to incorporate future climate impacts into today’s risk models.


Allianz response managing the risks and capturing the opportunities

Allianz Response: Managing the risks and capturing the opportunities

Business Cases (Overview)

  • Allianz is a leading insurer in Germany for renewable energy solutions

  • Allianz’ banking arm, Dresdner Bank, is the leading service provider for the rapidly growing European emissions trading market.

  • Allianz Global Investor’s “Ecotrends Fund”, which invests in renewable energy, collected > €1 B in less than a year in Europe, US and Asia

  • Allianz Capital Partners is investing parts of life insurance premiums into wind farms across Europe (€500 M in next 5 years).


Allianz response managing the risks and capturing the opportunities1

Allianz Response: Managing the risks and capturing the opportunities

Business Case for Insurance

  • In our global industry insurance business alone, 40 percent of damages are due to storms and floods.

  • The insurance industry traditional assesses risk based on historic data. Insurers need to account for future weather related risks

  • Allianz Global Corporate and Specialty uses Google Earth to visualize regional risks.

  • Premiums might rise in some geographical areas

  • Customers increasingly demand “green” products that not only cover their risks but also reward their environmental behaviour

  • Allianz introduced green product schemes in the US and Austria

  • Allianz’ banking arm, Dresdner Bank, is the leading service provider for the rapidly growing European emissions trading market.

  • Allianz Global Investor’s “Ecotrends Fund”, which invests in renewable energy, collected > €1 B in less than a year in Europe, US and Asia

  • Allianz Capital Partners is investing parts of life insurance premiums into wind farms across Europe (€500 M in next 5 years).


Allianz response managing the risks and capturing the opportunities2

Allianz Response: Managing the risks and capturing the opportunities

Business Case for Banking

  • Dresdner Bank has become a leading player in the European emission trading

  • Dresdner Bank and Gazprombank recently announced a joint venture (Carbon Trade and Finance SICAR S.A.) to invest in projects that generate CO2-certificates which Dresdner sells to the investors.

  • Dresdner Bank also provides guidance to investors and policymakers worldwide on the development of the carbon emission trading market.


Allianz response managing the risks and capturing the opportunities3

Allianz Response: Managing the risks and capturing the opportunities

Business case for investment

  • In spring 2006, AGI launched the Allianz RCM Global Eco Trends Fund which invests in companies with exposure to Eco-Sectors, collecting more than 1 billion euros in less than a year.

  • The funds exposure to sectors like EcoEnergy (e.g. alternative energy and energy efficiency) represents a innovative investment vehicle to acknowledge climate conscious investment value.

  • In 2005 Allianz Specialised Investments was founded to invest 500 million euro in renewable energies, mainly wind.

  • Allianz estimate: Market of renewable energy to grow worldwide to Euro 250 billion until 2020.


Allianz response

Allianz Response

Political Framework

  • Allianz actively supports the EU targets for 20% CO2 reduction by 2020, as well as a binding target of 20% share of renewables in energy mix.

  • Allianz has also called upon the U.S. Congress for a binding CO2-reduction target as well as the introduction of a cap-and-trade system similar to the European Trading Scheme.

  • Binding targets are particularly relevant for us as an investor to create the necessary investment security.


Www allianz com climate michael anthony@allianz com

“Climate change creates significant costs for the financial industry. In the interest of our clients and shareholders we are obligated to take these risks into account when making decisions on insurance underwriting, investments or lending credit.“Joachim Faber, Allianz SE Board Member and CEO of Allianz Global Investors

www.allianz.com/climate

[email protected]


  • Login