Sustainability Report 2021 02.1 Sustainability in insurance The winner of the fifth annual Allianz Climate Risk The overall project objective is to provide quick In September 2021, the NZIA announced that 01 Introduction Understanding of climate risks The future impact of climate change will depend Research Award for young PhD students working pay-outs from a parametric flood cover to it will collaborate with the Partnership for 02 Measuring and significantly on the political will to address the on innovative approaches to address climate enhance the response capacity of the National Carbon Accounting Financials (PCAF) to develop managing sustainability crisis and the speed at which it can be managed. risks was Dr. Nina Ridder. Her research focuses Disaster Management Organization (NADMO) a global standard to measure and disclose Sustainability in our business activities If emissions are reduced swiftly enough, warming on compound events – events during which two of Ghana in severe flood cases to re-establish greenhouse gas emissions associated with re-/ 02.1 Sustainability in insurance can be limited and the resulting risk might be kept weather or climate-related hazards co-occur – economic activity of low-income communities in insurance portfolios. Such a standard will help 02.2 Sustainability in at an affordable level for the insurance sector in which can have devastating effects. urban areas, starting with Greater Accra Region. re-/insurers obtain a deeper understanding of proprietary investments developed insurance markets. Find out more about the Allianz Climate Risk The project builds on the lessons learnt from the climate risks in the underwriting portfolios, 02.3 Sustainability in asset management Research Award online here. Allianz/GIZ Public-Private Partnership (PPP) help them to decarbonize their portfolios through Sustainability in our organization If climate-related risks like extreme weather project (2018–2021) in Ghana. target setting, scenario analysis, etc., and create 02.4 Human resources events become high, the public sector and the Caring for the climate vulnerable comparability for stakeholders. 02.5 Customer satisfaction insured may need to take more risk. This could The U.N.-convened Net-Zero 1 be in the form of investment in higher protection Closing the insurance gap Insurance Alliance See the full details of the collaboration here. 02.6 Environmental management standards such as flood defenses or higher risk retentions. The warmer it gets, the more likely We actively support the InsuResilience Global In July 2021, Allianz joined forces with seven 03 Strengthening challenges for insurability arise. This could burden Partnership (IGP)’s goal to provide climate risk other leading insurers to form the U.N.-convened our foundation clients and societies, especially in highly exposed insurance for up to 500 million people in the Net-Zero Insurance Alliance (NZIA). The first of 04 Climate-related regions such as low-lying coastal areas. most vulnerable developing countries by 2025. its kind net-zero network for the underwriting financial disclosure To promote this goal, the German Federal Ministry business was launched alongside the G20 summit, Managing this challenge requires constant for Economic Cooperation and Development underlining the importance of cooperation between 05 Our universal principles and open dialogue to foster understanding of (BMZ) set up the InsuResilience Solutions Fund leading governments and companies to mitigate the issues and better resilience to climate risks. (ISF) to fund product and solution development. the risks of climate change. Cross-industry and In November 2021, we held the second annual Delphine Traoré Maidou, Allianz Africa’s Chief international partnerships are seen as important Allianz Understanding Climate Risk Stakeholder Executive Officer, represents Allianz as one of two levers for tackling global challenges. Dialogue and Award. Stakeholders from Allianz private sector representatives on the IGP’s High- Members will set for themselves measurable and partner institutions came together virtually Level Consultative Group. and science-based targets. The first targets are to focus on building an understanding of climate In the context of the Tripartite Agreement expected to be released by July 2023 latest for the impacts, identifying threats and opportunities, between BMZ, the U.N. Development Program target year 2030. After 2030, they will be updated and charting a common path for action through and the Insurance Development Forum (IDF), every five years up to 2050. Once the first targets dialogue between academics, public sector Allianz and Swiss Re are co-leading a project are set, members are required to report on their and industry. to develop a sovereign disaster risk insurance progress on an annual basis. Having begun in solution for Ghana with support by the local 2021 and continuing throughout 2022, the group UNDP office. For this project we applied for will develop the respective methodologies and co-funding from ISF in 2021. At the end of the define the first intermediate target in the NZIA year, we received a conditional grant approval. target-setting protocol, which is expected to be In 2022, we will formally launch the project. launched in January 2023. 1 https://www.unepfi.org/psi/wp-content/uploads/2021/09/PCAF-NZIA-announcement.pdf 19