Amidst a global surge in environmental consciousness, Allianz Malaysia Berhad (Allianz Malaysia) is spearheading a transformative change with its robust ESG (Environmental, Social, and Governance) and sustainability initiatives.

Chief Executive Officer, Allianz Malaysia, Sean Wang said that through steadfast commitment to environmental preservation, social empowerment, and ethical governance, the company is charting out efforts that are gradually showing impact in their corporate well-being and overall eco-system.

“As part of Allianz Group's global climate strategy, we have been monitoring environmental impact in waste, water, travel, paper, and energy for over a decade. We aim to achieve a 50% reduction in carbon emissions in our own operations by 2025 and to reach Net-Zero by 2030,” he explained, adding that they are on track to achieve the targets.

The company has already met its target of 100% renewable energy, scheduled by 2023, in operations through the purchase of i-Renewable Energy Certificates, supplemented by the generation of solar energy in one branch office.

In addition, adopting a hybrid work environment allows Allianz Malaysia to reduce office space and environmental footprint.

“We use digitalisation to cut paper consumption, leverage technology to minimise travel, and retrofit offices for better resource efficiency,” Wang added.

Allianz Malaysia today also uses ESG screening criteria for investments and insurance transactions, subjecting those in 13 sensitive business areas to additional scrutiny.

“We are also phasing out fossil fuel investments and monitoring the carbon footprint of our investment portfolio to achieve a net-zero investment portfolio by 2050.”

PRODUCT OFFERINGS

Today, Allianz Malaysia offers insurance solutions, promoting social inclusion and protection. These solutions, such as PerlindunganKu Allianz4All, Allianz Kasih Hayat, and Allianz KampungKu, cater to diverse needs, particularly the underserved.

"Committed to supporting our customers during natural disasters like floods, we have implemented swift claims processing to facilitate a speedy recovery. We also incorporate flood relief benefits in our PerlindunganKu Allianz4All product, reinforcing climate resilience through essential financial protection," he explained.

PerlindunganKu Allianz4All is Allianz Malaysia’s first product under its new Allianz4All Untuk Semua series. This series of products embraces Universal Values to meet the needs of all Malaysians and will complement Allianz Malaysia’s existing products

In collaboration with the Ministry of Domestic Trade and Living Costs, the company first announced two upgraded products under the “Rahmah Initiative” Package - PerlindunganKu Allianz4All for Personal Accident coverage and Allianz MotorcyclePlus for Motorcycle coverage.

Allianz Malaysia then announced another three more products under the Rahmah Insurance Initiative, which are the “Private Car Rahmah Package” for Comprehensive and TPFT (Third Party, Fire & Theft) cover and a new life insurance product ‘Allianz Kasih4All’, addressing affordable insurance solutions for private cars and life insurance, respectively.

Allianz Malaysia is among the first insurance providers to launch a product that is part of the Insurance Rahmah initiative by the Government of Malaysia which aims to provide affordable insurance plans for all Malaysians.

Allianz Malaysia prioritises good governance and transparency, exemplified through their revamped panel of Allianz Authorised Repairers in 2020, selecting high-quality PIAM Approved Repairers Scheme (PARS) workshops through an e-tender. This ensures the selected workshops offer only the best quality and service to customers.

Wang emphasised that the company's ability to achieve these goals stems from its holistic approach to ESG. Rather than treating Environmental, Social, and Governance initiatives separately, they integrate and consider them collectively across the business, allowing for more comprehensive and effective outcomes.

TASK FORCE

To effectively embed ESG considerations into the business, Allianz Malaysia ensures that ESG matters are discussed at the highest management level through the Local ESG Board. Then there is also a dedicated Sustainability Department to facilitate and support the implementation of ESG initiatives, and foster ESG awareness across the organisation.

However, at the centre of it all is the ESG Taskforce, which is a cross-functional committee, which plays a vital role in driving sustainability efforts. It engages in holistic discussions and deliberations on sustainability initiatives, and it is divided into five workstreams focusing on sustainable operations, insurance, investments, and enabling functions.

“This structure ensures a comprehensive approach to sustainability throughout the company,” said Wang.

STAKEHOLDERS’ INTERESTS

Wang said that Allianz Malaysia actively considers various stakeholders' interests through various platforms to gain valuable insights in order to enhance products, and services, and build strong relationships.

For example, the company prioritises customer satisfaction by conducting surveys like the Net Promoter Score and Voice of Customer rating. They also engage through online platforms, including the corporate website, social media, smartphone apps, and the MyAllianz Customer Portal. The Allianz We Care Community platform further strengthens customer relationships and is also open to non-customers; with the objective of encouraging members to take charge of their health.

“Understanding that employee engagement is vital to maintaining a motivated and connected workforce, we conduct an annual Allianz Engagement Survey and supplementary Pulse Surveys to gather employee feedback. We also organise townhall meetings, internal publications, learning and development programmes, as well as corporate volunteering initiatives, to foster employee engagement,” said Wang.

“Investors' and shareholders' interests are seen to via various channels, including the Annual General Meeting, reports and circulars, quarterly analyst briefings, quarterly reports, and announcements. Allianz Malaysia also ensures transparency and communication through online platforms and constant engagement with the media,” he added.

For intermediaries and business partners, the company engages with them through internal publications, townhall meetings, council meetings, recognition events, and training and development opportunities.

Allianz Malaysia collaborates with service providers to deliver the best experience to customers. Therefore, vendor integrity screenings and renewals are conducted, as well as regular audits with panel providers. Training and awareness programmes are also provided to align their practices with Allianz Malaysia's standards.

Allianz Malaysia also recognises the importance of government, regulators, and industry peers in shaping their operating environment.

“Therefore, we participate in working and advisory groups and engage in dialogues, training, and meetings to ensure compliance with regulations and industry best practices,” he explained.

The insurer also takes its responsibility towards society and the planet seriously. They conduct NGO integrity screenings, engage in corporate giving, and form partnerships with social organisations.

“Initiatives like community health programmes and the Allianz We Care Community platform reflect our commitment to sustainable practices and charitable support,” he stressed.

MEASURING SUCCESS

Allianz Malaysia tracks non-financial indicators in its sustainability statement for three years, enabling progress monitoring. Environmental metrics like GHG emissions are reviewed semi-annually, facilitating prompt action. The Investment Committee quarterly assesses the portfolio's carbon footprint to align with the net-zero investment target by 2050.

“We track corporate citizenship indicators, such as monetary contributions and beneficiaries reached, in our annual report. HR progress is evaluated through positive outcomes in the annual AES results. Additionally, Allianz's EDGE certification reflects our commitment to diversity and inclusion,” said Wang.

Allianz Malaysia also considers external views of their ESG performance. Ratings from FTSE Russell and recognition through various awards, like the ASEAN CG Scorecard Assessment and MSWG-ASEAN CG Award, showcase Allianz’s achievements in corporate governance and sustainability efforts.

FUTURE PLANS

Moving forward, Wang said that the company will continue to develop products that address climate risks and promote social inclusion, such as flood resilience, electric vehicle transition, and affordable insurance.

“In operations, we have accelerated our ambition to achieve net zero by 2030 instead of 2050. Additionally, we leverage and learn from the experience of other entities within the Allianz Group, particularly in sustainable product offerings,” said Wang.

Moreover, we remain committed to supporting industry efforts, exemplified by our participation in JC3, the financial industry's joint committee on climate change,” he added.”