Allianz Case Study 2025

In the context of mandatory reporting obligations, we are in a sector-agnostic phase of reporting and sector-specific clarifications are not yet there. Jonathan Loewens, Group Accounting at Allianz Group1.4 Challenges obtaining reliable, timely, useful data on sustainability Allianz’s Jonathan Loewens is clear on Allianz’s uncompromising ambition to elevate the quality of its sustainability reporting: “We want to have our sustainability data on the same level as financial data, treat it like financial data and have the same level of assurance as we obtain over financial information.” Achieving this will require raising the bar on data assurance from “limited” to “reasonable”. We want to have our sustainability data on the same level as financial data, treat it like financial data and have the same level of assurance as we obtain over financial information. Jonathan Loewens, Group Accounting at Allianz Group As a data-driven company, getting reliable data is “super important” and Loewens prioritizes securing both “the facts behind the figures and the figures behind the facts”. Challenges in securing this data include the following: –Lack of global sustainability reporting standards: The historical lack of global reporting standards, or well- established and consistent system for assurance over sustainability information makes it difficult to ensure that data is reliable, consistent and, critically, comparable across different countries and industry sectors. –Lack of methodologies for certain asset classes: Insurance companies deal in asset classes such as asset- backed securities (ABS) and mortgage-backed securities (MBS). However, a lack of methodologies on how to assess the greenhouse gas emissions arising from ABS and MBS, as well as from the loans and assets that lie behind those securities, means that Allianz is not able to provide the full picture on the sustainability-related risks and opportunities associated with these products. “This must evolve over time,” says Loewens. –Lack of consistent approaches to sector-specific guidelines for company reporting: Disclosure requirements in many sustainability-related areas are yet to mature. “In the context of mandatory reporting obligations, we are still in the early stages of reporting and there a lack of consistent approaches to how an insurance company should report on emissions or other sustainability matters,” says Loewens. Different levels of data complexity and assurance by topic: Sustainability reporting is in transition, with different levels of data reliability depending on the topic. Companies have been seeking assurance over specific data points, such as greenhouse gas emissions, for some time, and auditors have become more adept at auditing these areas. The introduction of mandatory assurance requirements, as seen with the European Sustainability Reporting Standards (ESRS) adopted in July 2023 under the CSRD, now extends assurance to sustainability disclosures as a whole. However, “for other topics beyond climate, especially nature-related issues, there are fewer reliable data points available at this point in time and the audit procedures are still emerging,” says Loewens. 1.5 Identifying and obtaining information about the value chain Start by defining your value chain The ISSB’s IFRS S1 standard requires companies to disclose sustainability information about their value chain. As with many companies, the sustainability impacts within Allianz’s own operations, including emissions arising from self-used buildings and employees, are of lower magnitude than its downstream value chain. The company’s downstream value chain covers insurance (including life and health (re)insurance and property and casualty (re) insurance), proprietary investments and asset management (third-party investments business).