The financial industry in Northern Ireland needs to systematically screen climate change risks, a new report by the Allianz Group and WWF has said.

Allianz, an international financial services provider, marked the publication of the report ‘Climate Change & the Financial Sector: An Agenda for Action’ with a pledge to grow investments in renewable energies by 300 to 500 million euros over the next five years.

The report outlines specific steps for actions to better integrate risks from climate change into the insurance, banking and asset management business.

"Climate change creates significant costs for the financial industry,” says Dr Joachim Faber, Allianz AG Board Member and CEO of Allianz's asset management arm, Allianz Global Investors. "In the interest of our clients and shareholders we are obligated to take these risks into account when making decisions on insurance underwriting, investments or lending credit.”

Malachy Campbell, Policy Officer at WWF Northern Ireland added: “Climate change is one of those long-term problems facing Northern Ireland which is not being adequately addressed by business or government. We are therefore delighted that business is recognising this problem and its inherent threats and that it is taking steps to exploit the huge potential of the renewables market.”

WWF and Allianz said they wanted to cooperate further to develop new tools for climate risk assessment, and show how leading financial companies can help manage the transition to a clean energy economy, something that offers the potential for local job creation while tackling the threats from climate change.

(MB/SP)