03.4 Strategy resilience, stress tests and climate scenario analysis 01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles Analogously to the outcome for real estate investments, the majority of renewables are found to be at very low risk for inland flood under the baseline scenario. The increasing inland flood risk for higher emissions scenarios is mainly driven by locations in Europe, especially Germany. All wind and solar parks in Europe have a very low risk for tropical cyclone risk in the baseline scenario which remains stable over future years and scenarios. This is due to the fact that these locations are not inside of the tropical cyclone sensitive area. The renewable investments in the US however, show in the baseline scenario a low risk and a slightly decreasing trend of tropical cyclone risk in the future scenarios and years. Outlook The outcome of the ACCRiS analysis for investments enables informed investment decision making processes, optimizes future portfolio allocations accounting for climate change and allows for identification of asset locations where adaptation measures should be evaluated to ensure minimal impacts of future climate related natural catastrophes. Our next steps will be to work on direct (not via fund structures) debt which finances physical assets, e.g. mortgages, infrastructure debt and debt financing of renewables. Table 2 Distribution (in % Market Value) of risk categories for inland flood under different scenarios and years for real estate direct investments High MediumLow Very low Baseline 0% 20% 40% 60% 80% 100% RCP2.6 – 2030 RCP2.6 – 2050 RCP4.5 – 2030 RCP4.5 – 2050 RCP6.0 – 2030 RCP6.0 – 2050 RCP8.5 – 2030 RCP8.5 – 2050 20% 9% 5% 65% 17% 12% 5% 65% 17% 13% 5% 65% 17% 13% 5% 65% 16% 14% 5% 65% 17% 12% 5% 65% 16% 14% 5% 65% 16% 14% 4% 65% 14% 16% 4% 65% Inland flood % Allianz Group Sustainability Report 2022 117