Allianz SE maxed a total score of 88 points out of 100, compared to the average of 47 points at insurance industry level, showing a robust approach towards ESG in all main three pillars of the assessment.
Allianz SE Economic factors scored 87 points (industry average: 49; maximum industry score: 87), Environmental factors scored 95 points (avg.: 51; max.: 97), while Social factors were at 87 points (avg.: 41; max.: 88).
The ESG Ratings derived from the CSA are used for the annual rebalancing of the iconic Dow Jones Sustainability Indices (DJSI), as well as the S&P Dow Jones Indices (S&P DJI) ESG Index family and are made available to investors, researchers, and non-governmental organizations through the S&P DJI and Bloomberg data platforms. The results of the CSA are also used for the creation of the SAM Sustainability Yearbook, one of the most comprehensive annual publications on corporate sustainability.
A few other major insurance companies that are enjoying the distinction of being included in DJSI this year include AXA, Generali, NN Group, and MetLife.
RobecoSAM pointed out that insurance industry is more prone to embrace sustainable strategies than its finance relatives:
"The insurance industry's focus on sound risk management has resulted in the relative absence of significant fines and penalties compared to other areas of finance. The industry has also demonstrated leadership in integrating sustainability considerations into its core business. Most notably, leading insurers are increasingly considering long-term sustainability trends and factors in their risk assessments, and claims-management processes - including climate change risk and cybersecurity risk."
Also, RobecoSAM found that the insurance industry showed a very high interest in developing modern digital solutions and being closer to the customer, thus taking advantage of the current internet era that we live in:
"At the same time as the industry embraces digitalization, it faces both significant threats - but also opportunities. This has provided consumers with increased transparency and choice while simultaneously providing insurers with new direct-to-consumer channels for delivering new products and services. (...) Leading insurers, particularly those in life insurance, are exploring ways to use developments in digital technology to offer innovative products customized to meet the needs of their customers and incentivize healthier lifestyles through lower premiums."
More information about September 2019 DJSI/CSA annual review can be found here.
The SAM Corporate Sustainability Assessment (CSA) is a comprehensive annual evaluation of companies' sustainability practices and performance. Every March, RobecoSAM extends invitations to over 3,500 of the largest, listed companies globally to participate in the assessment by completing an in-depth questionnaire. Assessment results are published in September, following the analysis of companies' submissions complemented by additional research performed by RobecoSAM.
The CSA is one of the longest standing ESG rating methodologies worldwide, dating back to 1999. It assesses companies on the basis of 80 - 120 industry-specific questions across 61 industries focusing on financially material economic, environmental, and social factors that are relevant to companies' success, but that are under-researched in conventional financial analysis.
Every year, the CSA undergoes rigorous methodological review in order to ensure that the most current material sustainability topics, as well as emerging, long-term sustainability themes often of interest to investors are reflected, and companies are challenged on topics that lack disclosure today.