This article first appeared in The Edge Malaysia Weekly on September 16, 2024 - September 22, 2024

Allianz Malaysia Bhd (KL:ALLIANZ), part of the Allianz Group in Germany, had prioritised sustainability long before it became a global buzzword and concern. This early start in the journey to a more sustainable future led to the company being one of the early winners of The Edge Billion Ringgit Club (BRC) award for Best Corporate Responsibility (CR) Initiatives in 2017.

This year, Allianz Malaysia was again recognised on this front as a joint winner of the BRC award for Best CR Initiatives in the below RM10 billion in market capitalisation category.

Guided by a dedicated local ESG board and an ESG task force, the company achieved its 2023 target of 100% renewable energy in its operations, thanks to the i-Renewable Energy Certificates.

“Our commitment to digitalisation, demonstrated through partnerships with over 40 digital entities, has significantly reduced paper usage and minimised travel. Notably, our Perlindunganku Allianz4All product, aligning with Islamic finance principles, successfully distributed an inaugural surplus of RM65,534.51 from its Claims Allocation Fund to benefit seven charitable organisations,” Allianz Malaysia CEO Sean Wang Wee Keong said in a message dated April 1, 2024, in its 2023 annual report.

Acknowledging that monitoring greenhouse gas emissions and the carbon footprint of its insurance and investment portfolios has been essential in contributing to a low carbon economy, Allianz Malaysia has committed to a 30% reduction in emissions intensity for its proprietary investment portfolio of listed equity and corporate bonds by 2025, based on the 2019 baseline.

“In terms of our own operations, we have set a target to reduce 50% of our emissions by 2025. As the CEO, I take immense pride in our corporate citizenship progress, reflected in our annual report, and our commitment to diversity and inclusion, as evidenced by Allianz’s EDGE certification,” said Wang.

Globally, Allianz Group, as a signatory of the United Nations Environmental Programme Finance Initiative Principles for Sustainable Insurance since 2014, integrates sustainability risk management in its underwriting processes, which is crucial to managing indirect risks from insured clients. This involves a thorough referral and assessment process, which is part of a comprehensive risk management framework.

“The group incorporates ESG factors into underwriting, utilising policies like the Allianz Standard for Reputational Risk Management to evaluate risks. Regular updates of this framework align with Allianz’s climate commitments, including managing fossil-fuel-related businesses. In 2023, Allianz revised its classification framework for sustainable insurance solutions in property and casualty insurance, adapting to evolving regulations like the EU Taxonomy,” he elaborated.

Apart from these sustainability initiatives, Allianz Malaysia also aided vulnerable communities during the pandemic and floods. A complimentary flood relief benefit for vehicles damaged by floods, for example, allows vulnerable groups to overcome the emergency situation without being cash-strapped.

Meanwhile, Allianz Malaysia’s partnership with Persatuan Bantuan Bencana Alam Malaysia continued to equip members of the public with the right skills to prepare for a flood. Their partnership with the Ministry of Youth and Sports on KLAS Swim successfully trained more than 2,000 people on basic and essential swimming techniques. In total, contributions channelled to corporate social responsibility (CSR) initiatives came to RM2 million, according to its annual report.

The company said that, through its CSR arm Allianz4Good, there were 18,923 beneficiaries of its programmes across its four CSR pillars, namely education, community support and development, mental health and relief.

Allianz Malaysia has also cultivated a diverse and inclusive environment where talents thrive irrespective of their gender, background or ability, it said. Allianz Beyond is its employee network for disability inclusion, which creates a safe space for employees to disclose their disability and workplace assistance needs.

According to Wang, Allianz Group had a commendable score of 82 out of 100 in the 2023 S&P Global Corporate Sustainability Assessment, a pivotal milestone underpinning its inclusion into the prestigious Dow Jones Sustainability Index on Nov 24, 2023. “These results signify Allianz’s unwavering dedication to catalysing positive societal and environmental transformations while forging impactful collaborations that shape a more sustainable future,” he said.

“The year 2023 has been another remarkable chapter in Allianz Malaysia’s story. It has been a journey of growth, resilience and unwavering commitment to our values and vision,” Allianz Malaysia chairman Zakri Mohd Khir said in its annual report.

“As we look to the future, we do so with confidence, knowing that we are well equipped to navigate any challenges and seize the opportunities that lie ahead. Our journey continues, and I am confident that with our collective efforts, we will continue to scale new heights and create meaningful impact on our society and economy.”

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