Allianz Case Study 2025

Build a picture by prioritizing the best data sources Given the diverse nature of Allianz’s value chain, the company leverages various data sources to gather the most objective, precise and complete data it can. The company follows a clear hierarchy in terms of reliability and stability to ensure the data it obtains is robust and trustworthy. Sources include the following: –Primary data collection: Asking investees for their specific, primary data is an important source for obtaining relevant information from the value chain. –Reported data: Allianz prioritizes data reported by listed companies and prepared in line with the EU’s Sustainable Finance Disclosure Regulation (SFDR) which requires financial institutions to report on any “principal adverse impacts” (PAI) arising from their activities. –Sector and country information: Where reported data is not available, Allianz uses sector and country information, for example data aggregated from authoritative sources like the UN Environment Programme’s Finance Initiative (UNEP FI). –Ratings information: The company accesses ratings information from credible sources, for example around human rights scores, to contribute to an assessment of its value chain performance. –Estimates: Estimates are important for obtaining a comprehensive understanding of the value chain, particularly in the context of assessing impacts, risks and opportunities. The measurement of the performance of Allianz’s sustainability ambitions in the form of metrics is therefore also based on estimates for its value chain, since the ability to obtain necessary value chain information varies depending on several factors, such as contractual arrangements or the level of control the company can exercise on the activities in its value chain. As such, Allianz supplements direct sources of information with indirect sources, such as sector-average data or other proxies. Challenges and solutions to obtaining reliable value chain data When it comes to ease of securing data from the value chain, there is a broad divide between listed and non-listed parts of the portfolio, with the latter category proving more challenging. The process of obtaining reliable data faces several challenges in addition to those noted above: –Lack of global sustainability reporting standards: This challenge becomes particularly relevant when dealing with investee companies, typically located across the world in jurisdictions that may define their green taxonomies and regulate sustainability reporting in ways very different from the EU. Without an agreed global sustainability baseline against which companies in the value chain can report, it is difficult for Allianz to secure consistent data from its investees and clients. As an insurance group, we have a double role in sustainability reporting: we are a preparer of our own information and we are also a user of our clients’ information. A single global reporting baseline is therefore essential to ensure we can secure standardized reporting from all our investees and clients. Jonathan Loewens, Group Accounting at Allianz Group –Time-lag in reporting due to dependence on investee-published data: Timing is another key challenge. Allianz needs to use reported data from its investees, but it cannot do so until that data has been published. This can lead to a 12-month delay in reporting on, for example, greenhouse gas emissions from landlords and suppliers. Allianz therefore must balance its priority to use the latest available information with the timeliness with which that data can be acquired. –Poor data availability for small and medium enterprises (SMEs): While data coverage for listed companies is improving, significant data gaps remain for SMEs – an issue of particular relevance for companies in Allianz’s value chain such as commercial policy-holders. –Contractual obligations on suppliers to provide verified data: Allianz consistently requests provision of data as part of its contractual arrangements. Such a contractual obligation provides a mechanism to hold its counterparties accountable for providing reliable, high-quality data. This approach is particularly relevant for Allianz’s investments through non-listed companies – for example in wind-parks or timber – where no audited, public report is available. “In these cases, we insist companies provide specific data and certificates,” says Loewens, adding: “We go very deep to ensure reasonable assurance of our data – our external auditor reviews how we collect this data from unlisted companies.”