Allianz Case Study 2025

1.6 Ensuring the reliability of third-party data and estimates Third parties Allianz makes use of third parties, such as intermediaries and data providers, to gather data from various sources. To ensure such data is reliable and complete, the company employs internal verification and control processes, while recognizing there are still data quality deficiencies given the market’s lack of maturity. Additionally, Allianz requests certifications from its third-party data providers. Estimations In cases where complete data is not available, estimations can play a crucial role in filling the gaps and providing a comprehensive understanding of the situation, especially when it comes to materiality assessments. Allianz strives to ensure the accuracy and reliability of these estimates, while allowing for potential variability in the quality of estimations across different data sources. However, managing the level of uncertainty associated with estimations can be challenging when it comes to decision-making. Allianz ensures that any estimations it employs are based on sound methodologies that are appropriate for the context in which the estimates are used. In addition, the company applies the criteria of accuracy, relevance and consistency to all such estimates to ensure the results are reliable and useful. Details regarding the metrics for which estimates are used, including contextual information on their basis for preparation, scope, level of accuracy, assumptions and potential sources of measurement uncertainties, are reported alongside the metrics in the company’s Sustainability Statement. Assurance Assurance plays a significant role in this context. Allianz expects external audits to ensure the reliability and accuracy of the data obtained from third parties. Assurance requires a higher level of scrutiny and effort than verification processes. In situations where sufficient external assurance may not be available, the company conducts extensive internal validation and verification to ensure the quality and reliability of third-party data. Artificial intelligence (AI) Allianz does not yet use AI at scale to assess data quality, but the company believes the technology has potential, especially to analyse large datasets. “We have well-established processes to assess data quality on the financial side and to a large extent we copy these processes for our sustainability reporting,” says Loewens. It is essential, he adds, that “new sustainability reporting processes are well-defined and underlying data quality is high”, before considering using AI at scale. 1.7 Learning and advice Urgent need for establishing the global reporting baseline – plus interoperability between frameworks For Allianz, as for all companies interviewed in this series of case studies, a standardized global baseline for sustainability reporting is key for streamlined and reliable sustainability reporting. Until that happens, the top priority for national and regional regulators is to ensure that existing and upcoming sustainability reporting standards are as interoperable as possible. “We greatly appreciate the high level of interoperability between the ISSB Standards and ESRS on climate-related disclosures,” says Loewens, “however, we consider it absolutely essential to achieve (at best full) interoperability with other globally relevant sustainability topics beyond climate.” He adds that Allianz supports the close collaboration between ISSB and EFRAG in mapping the climate-related disclosure requirements of ISSB and ESRS. We believe it is very important to develop a standardized global sustainability reporting baseline, and we very much support ISSB in their aim to create one. Jonathan Loewens, Group Accounting at Allianz Group Exercising influence over investees is better than exiting the portfolio “We do not control our investees or clients and ensure they do X or Y,” says Loewens, “so our influence is limited; but we can engage with them on sustainability issues.” Nevertheless, he adds, “When we engage with our investees and customers, we need reliable information about their emissions. We want to support them to address sustainability matters and not just exit the portfolio.”