Sustainability trends in the spotlight

In this latest edition of?The Risk Radar, we take a deep dive into a number of sustainability-related hot topics. Our experts take a look at the growth of the carbon markets and what they can bring to a company’s sustainability strategy. We also examine the emerging topic of nature risk. How concerned should companies be about nature-related exposures and their impact on their operations? Elsewhere, we explore why building climate resilience is fast becoming a business necessity, as well as highlighting some of the sustainability liabilities on the watchlist of directors and officers. And don’t miss our insights into how the Net Zero transition and innovation are leading to big changes in the frequency, severity, and type of energy and construction claims handled by insurers.

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1. The growth of the carbon markets

Trading greenhouse gas emissions is increasingly being explored by governments and businesses as a route to achieving Net Zero targets. But how do the carbon markets work and what can they bring to a company’s sustainability strategy?

2. The rise of nature risk

Climate risk is already a well-documented issue for businesses, but the related subject of nature risk is following not far behind. How concerned should companies be about nature-related exposures, and what are the main challenges they pose to business operations and reputations?

3. Why climate resilience must be a business imperative

Building climate resilience is no longer optional – it’s a business necessity. By integrating resilience into core business strategies, companies can reduce the physical risks and impacts of climate change.

4. Sustainability liabilities move up the D&O watchlist

Directors and officers need to prepare for an increase in sustainability-related liability claims, as consumers, employees, activists, and shareholders apply pressure over their companies’ impacts on nature and climate change.

5. Claims activity in the age of greening

Claims teams are having to adapt to changing loss patterns, understanding new and emerging green technologies, from floating wind farms to green hydrogen.

Expert Commentary:

Arthur Lu , Global Head Environmental Impairment Liability, Allianz Commercial notes: “As climate- and nature-related risks continue to rise, the financial implications will become increasingly pronounced. Companies heavily dependent on natural resources will face mounting costs – not just from regulatory compliance but from operational disruptions caused by resource depletion, ecosystem degradation, and shifting climate patterns.”

Want to learn more about some of the sustainability trends to watch?

Download the latest edition of Global Risk Dialogue | Allianz Commercial

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