The financial industry needs to systematically screen climate change risks, according to a new report by Allianz Group and WWF
Allianz Group has pledged to grow investments in renewable energies by 300 to 500 million euros over the next five years.
The company and the World Wildlife Fund (WWF) have published the report ‘Climate Change & the Financial Sector: An Agenda for Action' which outlines specific steps for actions to better integrate risks from climate change into the insurance, banking and asset management business.
"Climate change creates significant costs for the financial industry,” said Joachim Faber, Allianz AG board member and CEO of Allianz's asset management arm, Allianz Global Investors.
Faber added: "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.”
Robert Napier, chief executive of WWF UK, commented: "WWF and Allianz want to cooperate further to develop new tools for climate risk assessment, and show how leading financial companies can help manage the transition to a clean energy economy."
The international financial service provider has commissioned a 'Climate Core Group' headed by Otto Steinmetz, chief risk officer of Dresdner Bank. The banking arm of Allianz Group and its investment bank Dresdner Kleinwort Wasserstein are frontrunners in climate related business areas such as emissions trading.
