Armin Sandhoevel, CEO of Allianz Climate Solutions, comments on current climate policies ahead of the upcoming International Climate Conference in Copenhagen.
At the end of this year, the world climate summit will be hosted in Copenhagen. Are the present efforts of top-ranking politicians enough to reduce CO2-emissions?
No, so far the countries failed to pave the way for a low carbon future, as people and financial investors need clear and mandatory worldwide targets for new climate change policies. The Heads of State should pledge financial and technological support for low carbon development and for adaptation measures in developing countries that are measurable, reportable and verifiable. None of this has happened so far.
It will cost us at least seven hundred billion euros a year; that’s one percent of the total global economic output, to transform ourselves into a climate-friendly society. And of course we need courageous politicians, who could push through long-term and expensive decisions. Without strong policies which encourage clean technologies and discourage high-polluting technologies, the investment power of global companies won’t bring about the needed level of positive actions against climate change.
Why do global companies like Allianz take interest in projects like CDP?
As global risk managers and investors, Allianz supports the Carbon Disclosure Project (CDP) because the CDP is crucial for more transparency and understanding regarding carbon risks and opportunities on our way to a clean-energy and low-carbon economy.
We believe that corporate governance, in respect of climate change disclosure, will reap its rewards. As carbon regulation increases, those companies that have implemented climate change-related strategies will be in better position to meet the challenge of higher carbon prices. The winners in these new competitive markets will be companies that already have started to reposition themselves to seize the opportunities of a low-carbon future. Allianz did so several years ago. Efficient and modern efforts in terms of C02 reduction are synonymous with efficient and modern management.
What concrete measures did you take, and what are your plans for the future?
Building a low carbon economy creates opportunities for investment in new technologies that promise to create a greener, more secure and sustainable future for society. Therefore, Allianz puts climate change right at the center of its business strategy: Since years we have directly invested into renewable energies and still consider this asset class a promising engagement.
We hold wind power assets worth over 500 million euros and plan to expand our renewables portfolio by a billion euros in combined wind and photovoltaic investments until the end of 2012. We are also actively expanding carbon market related activities, products and services for our clients.
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You can find the full Carbon Discolsure Project 2009 by clicking here
Click here to download the 2009 Investor Statement on the Urgent Need for a Global Agreement on Climate Change
