Climate change as a risk: Zurich tightens strategy on weather risks

Climate change as a risk: Zurich tightens strategy on weather risks

In a recent statement, Carsten Schildknecht, CEO of Zurich Germany, described climate change as the greatest risk to humanity. Especially with a view to the upcoming federal elections in 2024, he draws attention to the decreasing public perception of the issue of climate protection. This is happening against the backdrop of significant natural disasters such as storms, heavy rain, droughts and forest fires, which caused massive damage worldwide in 2024.

Such extreme events not only have catastrophic effects on people and nature, but also have direct financial consequences for the insurance industry. Every natural disaster puts a strain on Zurich's balance sheet, which Schildknecht perceives as a serious threat to prosperity and economic growth. To address this challenge, Zurich has revised its sustainability strategy and offers companies preventive advice on weather risks.

Sustainability strategy and targets

Since 2021, Zurich has already reduced CO₂ emissions by 74 percent and aims to achieve net-zero emissions by 2050. In addition, the company plans to equip 75 percent of its contractual partners with defined climate targets by 2030. The CO₂ pollution per square meter in real estate investments should be reduced by 45 percent during this period.

Schildknecht also emphasizes the need for maximum transparency in CO₂ compensation projects. To support these goals, Zurich is developing digital climate risk analysis tools to better prepare companies for challenging weather conditions. In 2023, the company's insurance premiums were 5.88 billion euros, with property and casualty insurance alone increasing by 9.4 percent to 3.14 billion euros.

Climate adaptation and disaster preparedness

In a broader context, the connection between climate adaptation and disaster prevention is of central importance, as the Federal Environment Agency also emphasizes. The UNFCCC process emphasizes the urgency of reducing greenhouse gas emissions and supporting vulnerable states in adapting to climate change. This international agenda is strengthened by the Sendai Framework, which aims to minimize risks from catastrophic events.

These strategies are not only important at the international level, but work is also being done in Germany to integrate climate adaptation and disaster prevention. For this purpose, a strategic alliance of authorities was created to promote the exchange of information about climate change and extreme events. Wuppertal represents a positive example of the successful combination of climate adaptation and civil protection.

The report from the European Environment Agency also highlights the economic damage that climate risks cause in Europe. These findings support the relevance of integrated climate action and resilience plans in cities, as described in Sustainable Development Goal 11b of the UN Agenda. In order to effectively overcome the challenges of climate change, close cooperation between crisis management, disaster prevention and climate adaptation is essential.

Zurich Germany's initiative and internationally coordinated approaches to climate adaptation demonstrate the urgency and necessity of proactively addressing the climate crisis. The goal of dealing with the effects of climate change in a sustainable and resilient manner can only be achieved through joint action.