Corporate Risk

Climate change poses regulatory, financial and reputational risks for businesses.

The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is a new mandatory emission trading scheme commencing in April 2010. It aims to improve energy efficiency and reduce the amount of CO2 emitted in the UK.

The scheme provides a financial incentive to reduce CO2 emissions. Affected organisations are required to purchase allowances for every tonne of CO2 they emit and are rewarded for making reductions.

We have been taking steps for many years to manage our ‘carbon footprint’ by reducing energy use and business travel which in turn  reduce our operating costs and improve efficiency (see ‘Environmental impact’ chapter). The CRC will not fundamentally change our approach and target to reduce our emissions.

The technical requirements of the scheme have prompted us to take a more co-ordinated approach to CO2 reductions. Personnel from CSR, Group Risk, Management Services and Allianz Engineering Energy Services are all working to ensure compliance with the CRC.