In times of financial crisis, sustainability has lost none of its importance. Daniel Dirks, head of the area Allianz4Good talks about the role of Allianz in dealing with some of the most urgent long-term problems we face today.

• Mr. Dirks, what is the biggest challenge facing your department, Corporate Responsibility, this year?

Daniel Dirks: "This year" is a bit short-sighted for our department. Our main focus is on issues that require the long haul approach. We think in the long term. On the one hand, this means that we don't have something truly spectacular to report from month to month, but on the other hand, we're used to having the perseverance to facilitate real change in the long run - even if we have to take a large number of small steps to get there. Specifically, this means pushing ahead with our sustainability programs.

• Isn't sustainability just one of those buzzwords, a costly attempt by companies to polish up their image?

Dirks: That depends on how you go about implementing it. It also depends on whether you want to, and in fact can be, credible.

Many people pay into life insurance policies for 30, 40 or even 50 years and expect us to be there for them, and deliver on our promises, when they reach the end of the road. If you look at a lot of the claims being submitted today, be it due to accidents or major storms and other natural catastrophes, it takes a lot of perseverance to get everything back up and running. Our employees expect us to offer them secure jobs in the long term, our customers want to know that they can trust us with their insurance funds and investments, and our shareholders want to see the company report sustained positive performance.

So maybe things are a bit easier for us here at Allianz, because our whole business wouldn't work if we didn't think in the long term, if we weren't sustainable. We can only be successful if we prove to be reliable in the long run.

• But is it actually even justified to address this issue in times of financial crisis?

Dirks: Yes, absolutely! It is especially important to be a good corporate citizen in times of crisis. Since 2008, when the financial crisis reared its ugly head, the entire financial industry has had the very critical eye of politicians, the media and the general public at large on it. Unless financial companies can make a visible, commendable contribution to general social and economic developments, this mistrust will never be dispelled.

So sustainability is all about looking at the big, long-term issues. Let me give you one example: people are worrying more and more about the link between economic advancement and its impact on our natural surroundings, not only in the form of environmental disasters, but also in the form of climate change, which is no longer the merely subtle trend it once was. Obviously, I can't turn around and tell our customers: "I can offer you two percent more interest today, and I couldn't care less that this might be at the expense of the environment and can only be achieved by exploiting natural resources and social injustice." So as an investor, for example, I also have to look at environmental protection and social rights when I embark on investment projects.

• Is that it?

Dirks: I think it's a good step in the right direction. But it's only part of the story. Allianz is like a huge global risk research institute. May of our employees have accumulated an incredible wealth of knowledge over the decades and we want to put this knowledge to good use in our day-to-day work. We are looking at the risks associated with wind turbines just as we're looking at the impact global warming is having on certain areas of the world.

One example is our collaboration with the Red Cross to discuss how we can provide better support when major natural catastrophes appear imminent. These catastrophes often hit developing countries and emerging markets and occur in regions that are difficult to access. So it is particularly important to put structures in place in such areas to allow the population to protect themselves and their worldly belongings from the catastrophe. This is an area where we can contribute our experience of these events on our insurance markets.

• Let's get back to 2012. What are the main projects that you are focusing on?

Dirks: One of our major projects is aimed at providing better education on the issue of finance together with the non-profit My Finance Coach initiative. Young people, in particular, lack any sort of preparatory training in this field. That explains why household debt is clearly on the rise, especially among 19 to 25 year-olds. It's surprising how quickly a 12 year-old can clock up hundreds of euros in debt with his mobile phone.

This is an area that we are becoming increasingly committed to. Our employees go into schools during their working hours and teach. In order to ensure that teachers, parents and pupils are keen to get involved in the program, we have consulted external specialists and invested a huge amount of effort into considerably improving the program last year in terms of both quality and quality. It's really not that easy to talk to 12 year-olds when you're used to a sales or office-based job. The feedback we've received from pupils and teachers alike is fantastic, but our colleagues have been really enthusiastic as well. Incidentally, even our Board members are getting involved. This is something we want to continue with.

Other key projects include stepping up our activities in the area of social entrepreneurial spirit (Social OPEX, start social) and road safety. These programs are, at the same time, also aimed at encouraging our employees (and, in some cases, employees who have already retired) to become actively involved, which makes a key contribution to the issue of employee engagement. I should also mention microinsurance, which is an area we want to expand, albeit making sure that we exercise good judgment when deciding whether the products and programs really make social and entrepreneurial sense.

• That sounds like good-old social commitment to me. But you said that you want to embed the concept of sustainability in the business...

Dirks: The idea of a low-emission economy is another big issue. In 2006, we set ourselves the target of reducing Allianz's CO2 emissions by one fifth by 2012. We had already achieved this objective last year. When we noticed that we would hit our target early, we decided to aim for a further reduction of 10 percent, i.e. a total reduction of 30 percent by 2015.

But we're also exploring new avenues. In Kenya, for example, we've invested in a forest protection program that also has a social and economic development component. We want to prevent a situation in which the people who live there have to continue destroying their own forest out of sheer desperation. This is why we have a stake in a project development company that helps local people to manage their resources sustainably.

• What does this have to do with Allianz's actual business?

Dirks: Investments like the one I spoke about in Kenya will allow us to get involved in CO2 certificate trading. The lower CO2 emissions generate CO2 certificates that can be traded. Of course, the whole idea is still in its infancy, but we think it's a good long-term initiative. We are also insuring and investing in photovoltaic and wind energy systems and, in some cases, acting as experts for banks that need help with lending decisions for projects like this.

• What needs to happen in 2012 to make it a good year for you?

Dirks: We plan to drive ahead with our projects within Allianz in a larger number of countries. I would be absolutely delighted to see a large number of our colleagues take part and contribute their thoughts and ideas.

Otherwise, I'm looking forward to the sustainability conference in Rio de Janeiro next June. This is set to mark a key milestone. It would mean a lot to us if we could use the conference to send out clear signals on what has to be done and who is making which contribution to ensuring that we can all become much more sustainable in the social and economic development of the international community.

About Daniel Dirks

Daniel Dirks is head of Allianz4Good, the corporate responsibility function of Allianz SE. From 2006-2010, Dirks was responsible for Group HR, the global human resources function of Allianz Group. He joined Allianz in 1999, following four years as a senior researcher and head of the Economics Department at the German Institute for Japanese Studies in Tokyo, Japan.

Source: www.allianz.com