GRI reporting and Global Compact Communication on Progress

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GRI reporting and Global Compact Communication on Progress

In preparing the Munich Re Corporate Responsibility Portal, we have taken as a basis the G3 Principles of the Global Reporting Initiative (GRI) and the Financial Services Sector Supplement. Our aim is to make our performance more transparent and comprehensible. Application Level B has been confirmed by the GRI.

In August 2007, Munich Re joined the United Nations Global Compact. The indicators presented in the GRI disclosures simultaneously fulfil the requirements of the annual Communication on Progress Report. We thus document the measures we have taken to firmly anchor the ten principles of the Global Compact in our operations.

The following tables contain summarised comments on the individual indicators and refer to Munich Re’s Corporate ResponsibilityPortal and other publications. All information is valid for Munich Re (Group), including examples of our different business lines – reinsurance, primary insurance (ERGO), Munich Health and MEAG.

Strategy, organisation and reporting profile

GRI No./
(GC*)
Performance indicator / Brief answer Link Degree of compliance
1.0 Strategy and analysis    
1.1 Statement from the most senior decision-maker of the organisation (e.g. CEO, chair, or equivalent senior position) on the relevance of sustainability to the organisation and its strategy CR portal
Statement CEO
Full
1.2 Description of key impacts, risks, and opportunities

In our core business, we accept global challenges ranging from climate change to demographic trends and combating poverty in developing countries. As a reinsurance group, we can help to deal with these challenges primarily by identifying, assessing and pointing out the associated risks early on, and then offering innovative insurance solutions for them wherever possible.
In addition, we have incorporated the results of a current survey into a comprehensive materiality matrix, highlighting key impacts, risks and opportunities.
CR portal
Strategy and challenges
Solutions
Materiality analysis

Group annual report 2013
Download (PDF, 9.3 MB)
Full
2.0 Organisational profile    
2.1 Name of the organisation

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München
  Full
2.2 Primary brands, products, and/or services

Our integrated business model realises synergies and diversification effects along the whole value chain. This is achieved by our three fields of business – reinsurance, primary insurance (ERGO) and Munich Health – and by our asset manager MEAG.
Group annual report 2013
“Our brands”: Back cover page 309;
“Management Report, Group structure”: pp. 31-36
Download (PDF, 9.3 MB)

Corporate website (Portrait)
munichre.com
Full
2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures.

Munich Re is one of the world’s leading risk carriers. Our integrated business model rests on three pillars – reinsurance, primary insurance (ERGO) and Munich Health, complemented by MEAG, Munich Re’s asset manager.

Our reinsurance business is organised in five divisions. Our international life business is written in the Life Division. Four other divisions provide property-casualty reinsurance. We intend to further strengthen our competitiveness by introducing various structural adjustments scheduled to be implemented by the end of 2014.

MEAG manages Munich Re’s assets for all three pillars, and offers investment products for private clients and institutional investors.
Group annual report 2013
“Munich Re, Management Report, Group structure”: pp. 31–36;
“List of shareholdings…”: pp. 276–285
Download (PDF, 9.3 MB)
Full
2.4 Location of organisation's headquarters

Munich, Germany
  Full
2.5 Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

Munich Re is an international group with operations in Africa, Asia, Australia and New Zealand, Europe, Latin America and North America. Details of our global presence can be found on the individual websites of our business units.
Group annual report 2013
“Munich Re’s global presence”: cover 2
Download (PDF, 9.3 MB)

Websites
Munich Re (Reinsurance)
ERGO
Munich Health
MEAG
Full
2.6 Nature of ownership and legal form

Munich Reinsurance Company is a joint-stock company (Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München).
Group annual report 2013
“Munich Re shares”: p. 10 ff
Download (PDF, 9.3 MB)

Corporate website (Shareholder profile)
munichre.com
Full
2.7 Markets served


Munich Re engages in reinsurance and primary insurance (ERGO) worldwide. It also provides asset management services (MEAG). Munich Re serves institutional investors, small and medium-sized businesses, and private clients. The Group offers its services through its branches and subsidiaries in the United States, Canada, Poland, Italy, India, the United Kingdom, France, Spain, China, Korea, Hong Kong, Singapore, Malaysia, Switzerland, South Africa, Australia New Zealand and other countries.
  Full
2.8 Scale of the reporting organisation

On 31 December 2013, the number of staff employed by Munich Re (Group) was 44,665.

Consolidated result: €3,342m.

Analysis of our capital structure: Munich Re’s capital structure is essentially governed by its activity as an insurer and reinsurer. Investments on the asset side of the balance sheet serve mainly to cover technical provisions (7676% of the balance sheet total). Equity (10% of the balance sheet total) and bonds classified as strategic debt (2% of the balance sheet total) are the most important sources of funds.

Number of products and services offered: Munich Re is one of the world’s leading risk carriers. The Group’s business operations cover the whole value chain of reinsurance and primary insurance (ERGO). Munich Re is also active in the field of asset management (MEAG).
Group annual report 2013
“Business performance”: p. 65 ff, 67
“Financial position”: p. 92 ff.
“Consolidated financial statements”: p. 272 ff.
Download (PDF, 9.3 MB)
Full
2.9 Significant changes during the reporting period regarding size, structure, or ownership

With effect from 1 April 2014, ERGO is grouping all customer-oriented back-office, benefits and claims-service operations, including the management of applications and contracts, in a new client and sales division. Life and health insurance in Germany will also be managed under one Board Member’s area of responsibility from that date.

Munich Health, Munich Re’s health insurance specialist, has withdrawn from US primary insurance business, previously written by the Windsor Health Group. The Middle East and Africa are managed from Abu Dhabi and Dubai, and the Asia-Pacific region via our office in Singapore.
Group annual report 2013
“Management Report, Group structure”: p.31 ff.
Download (PDF, 9.3 MB)
Full
2.10 Awards received in the reporting period

Munich Re won a range of awards in 2013. Our webpage shows a selection of the awards and prizes conferred on Munich Re in the reporting period.
CR portal
SRI indices, ratings and awards
Full
3.0 Report parameters    
3.1 Reporting period for information provided

Measures and activities presented relate mainly to the period from 1 January 2013 to 30 March 2014; the key figures relate to the 2013 financial year (ending 31 December 2013). The content of the CR portal is available in German and English and can also be downloaded as a PDF. This document serves as our Corporate Responsibility Report for 2013. There is also a 20-page abridged version of the 2013 report that contains the key information. On the homepage of the CR Portal, Munich Re also reports regularly on the latest significant developments in the area of Corporate Responsibility.
CR portal
About CR portal
Corporate responsibility news
Full
3.2 Date of most recent previous report

The last CR Report was published on the CR portal in June 2014.
  Full
3.3 Reporting cycle

Annual
  Full
3.4 Contact point for questions regarding the report and its contents

Georg Schwarz responsibility@munichre.com
CR portal
Contact
Full
3.5 Process for defining report content

Our stakeholders’ main expectations are the basis for the topics chosen for the Corporate Responsibility Portal. Munich Re cultivates ongoing, open and constructive communication with its stakeholders. The materiality process for confirming this year’s reporting content was conducted with a small defined group of expersts.

Munich Re understands corporate responsibility as a corporate mindset and a response to a dynamic environment shaped by a large number of different and constantly changing expectations and challenges. The dialogue with our stakeholders is one of the factors that enable us to improve the way we approach our strategic decisions and view our business orientation from different angles.

In the face of far-reaching challenges worldwide that have a significant impact on the future of the insurance industry, we are endeavouring to intensify dialogue with our stakeholders. We can broaden our understanding of the dimensions of these challenges by increasingly incorporating the assessments and perspectives of those stakeholders.

At present, Munich Re and the experts we consult consider the following four major topics to be of significance for our business model: climate change, increasing globalisation and vulnerability of the financial markets, demographic change and access to financial solutions. The importance of these major topics for financial service providers and insurers has been widely demonstrated and confirmed in recent years. We bring our multi-faceted and proven expertise into play here, wherever feasible and welcome, and contribute to the resolution of global problems with our innovative products and defined insurance covers.

We regularly discuss with selected experts what new forms, trends and additional issues are materialising in these four major areas and which are of importance for our corporate responsibility perspective. The comprehensive trend analysis we undertake within the company every five years also acts as a further framework of reference for us. Specialists from our Risk Management Department and from cross-disciplinary panels are also involved in this process. At the present time, we are also examining additional topics within the company, for example digitalisation and cyber risks, and their long term significance for Munich Re.
CR portal
Stakeholder dialogue
Materiality analysis
Full
3.6 Boundary of the report (e.g. countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)

The Corporate Responsibility Portal covers Munich Re (Group) as a whole, including examples from reinsurance, primary insurance (ERGO), Munich Health and MEAG. The basis for the boundaries are the employees included in the Annual Report.
CR portal
About CR portal
Full
3.7 State any specific limitations on the scope or boundary of the report

The Corporate Responsibility Portal addresses the most important and relevant activities in the field of Munich Re’s Corporate Responsibility.
All subsidiaries over which Munich Re has financial control and whose employees are covered by the Annual Report have been included within the reporting boundary.
CR portal
About CR portal
Full
3.8 The basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations

In accordance with the Global Reporting Initiative GRI G3 guidelines, the CR Portal covers data and information for all companies in which Munich Re has a controlling interest. The key figures concerning human resources relate to approximately 100% of Munich Re’s employees,those concerning the environmental sector approximately 87%,87 and contain extrapolations for areas not covered. All other information presented in the key figures refers to the Group as a whole.
CR portal
Facts and figures
Full
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report CR portal
Facts and figures
Full
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods)

We generally report on several years in order to show the development of performance indicators. The reasons for restatements of environmental data are generally improved data quality and availability following the introduction of a web-based data management system (SoFi), as well as changes in carbon accounting with revised emission factors. The effects of any restatements are explained for the indicators affected where applicable.
CR portal
Facts and figures
Full
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

We further expanded and improved our CR information system in 2012, incorporating additional sites and locations into our Environmental Management System (EMS). As a result, our data collection now covers a good 87% of our employees. Our efforts to improve data availability and quality are focused on our EMS.
There were no significant changes in measurement and calculation methods in 2013.
  Full
3.12 Table identifying the location of the standard disclosures

The information is included in this GRI summary document. References to webpages in the CR Portal and our Annual Report have been included above.
  Full
3.13 Policy and current practice with regard to seeking external assurance for the report

Munich Re recognises that good reporting relies on plausible data of high quality. Hence, the Group works with a proven sustainability software system (SoFi) that provides for a decentralised and dependable data collection process. Currently, only selected data reported in the Munich Re Corporate Responsibility Portal has been validated by a third party (e.g.  Munich Re’s environmental data according to ISO14064 – overall approximately 10%% of data coverage). However, Munich Re is confident that data quality is high and is making every effort to further improve and broaden its CR data management and reporting.
  Full

Governance, commitments and engagement

GRI-No./
(GC*)
Performance indicator / Brief answer Link Degree of compliance
4.0 Governance, commitments and engagement    
4.1 Governance

Munich Reinsurance Company is a joint-stock company (“Aktiengesellschaft”) under the German Stock Companies Act. It has three governing bodies: the Board of Management, the Supervisory Board and the Annual General Meeting. Their functions and powers are derived from the relevant legal provisions, the co-determination agreement and the Articles of Association. The Munich Re Corporate Responsibility Department is part of the Group Development Division, which reports directly to the Chairman. Besides this, a Group Corporate Responsibility Committee was established in 2012.
Group annual report 2013
“Corporate governance report and corporate governance statement”: pp.19-28
Download (PDF, 9.3 MB)

Corporate website (Articles of Association)
munichre.com
Full
4.2 Indicate whether the Chair of the highest governance body is also an executive officer

The Chairman of Munich Re’s Supervisory Board Bernd Pischetsrieder (since 01/2013), is not the Chairman of Munich Re’s Board of Management.
Group annual report 2013
“Corporate governance report and corporate governance statement”: pp.19-28
Download (PDF, 9.3 MB)
Full
4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

As we do not have a unitary board structure, this does not apply.
  Full
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

Munich Re offers institutional investors, private investors and employees a range of opportunities for input into decision-making. These include annual general meetings, a shareholder hotline, a suggestion scheme and blogs. Munich Re was one of the first DAX 30 companies to offer its shareholders a postal vote for the annual general meeting and the possibility to participate in the meeting via livestream and vote on items of the agenda at the annual general meeting without necessarily being present. In addition to a Group-wide staff council, there are also local staff councils.
Website (Investor & Rating Agency Relations)
munichre.com
Full
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organisation’s performance

Individual three-year objectives (2012–2014) for executive managers are linked to environmental, social or governance metrics and targets relating to approx. 3% of the total remuneration.
Group annual report 2013
“Remuneration report”: p. 46 ff.
Download (PDF, 9.3 MB)
Full
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided

In compliance with German law, Munich Re follows a dual management system that provides for independent supervision of the Board of Management by the Supervisory Board. In addition, Munich Re’s Code of Conduct includes rules and guidance for preventing and addressing potential conflicts of interest. Also, further guidelines are in place to ensure that conflicts of interest are avoided.
Corporate website (Code of Conduct, Section 4)
munichre.com

CR portal
Corporate governance
Full
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation's strategy on economic, environmental, and social topics Group annual report 2013
“Board of Management”: p. 95 ff.
Download (PDF, 9.3 MB)
Full
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

It is an integral part of Munich Re's business model as a global insurance group to adopt a forward-looking and responsible approach throughout our organisation. Munich Re‘s Core Principles, established in 2012, further integrate and thus strengthen our Corporate Responsibility approach, making it an integral part of our corporate strategy and relevant for all business areas and operations. The statements relate to the three fields of action – (1) CR in business, (2) the Environmental Management System and (3) Corporate Citizenship – and are supported via Strategy/ Governance and Communication.

Besides this, the Munich Re Code of Conduct sets out what we understand by legally impeccable behaviour, based on ethical principles, specifying high-level ethical and legal requirements that must be met by every employee, as well as our shared responsibility towards the public, our business partners and ourselves. It serves as the basis for corporate governance within the Group (e.g. ERGO) and it contains regulations that are binding on all Munich Re employees including the management. In 2013, a specific reference to the UN Global Compact was added. Environmental protection is also part of the codes of conduct. Besides this, a special code of conduct for the sales agents of ERGO was implemented in the course of 2011 as part of their employment contract.

Moreover, we were the first signatory of the Principles of Responsible Investment (PRI) in 2006 and signed the Principles for Sustainable Insurance (PSI) in July 2012.
Corporate website (Code of Conduct)
munichre.com

ERGO website (Code of Conduct)
ergo.com

CR portal
Guiding principles
Compliance
Full
4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

The Munich Re Corporate Responsibility strategy has been approved by the Board of Management. The Munich Re Corporate Responsibility Department forms part of the Group Development Division, which reports to the Chairman of the Board of Management. Since 2011, an Annual Evaluation Report on Corporate Responsibility has been submitted to the Board of Management.

Processes for evaluating the highest governance body’s own performance, particularly in respect of economic, environmental and social performance.
The Supervisory Board monitors Munich Re’s management and the long-term increase in corporate value achieved. Since 2011, Board members have received an Annual Performance Report on Corporate Responsibility. Munich Re’s information management provides for detailed analysis of economic, environmental and social factors. Regular reports are prepared for the Supervisory Board.
Group annual report 2013
“Report of the Supervisory Board”: (pp. 19 ff)
Download (PDF, 9.3 MB)

CR portal
Strategy & challenges
Corporate governance
Full
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance

The Supervisory Board monitors Munich Re’s management and the long-term increase in corporate value achieved. Since 2011, Board members have received an Annual Performance Report on Corporate Responsibility. Munich Re’s information management provides for detailed analysis of economic, environmental and social factors. Regular reports are prepared for the Supervisory Board.
Group annual report 2013
“Report of the Supervisory Board”: (pp. 19 ff)
Download (PDF, 9.3 MB)
   
Full
4.11
(7)
Explanation of whether and how the precautionary approach or principle is addressed by the organisation

Munich Re’s commitment to the precautionary principle is reflected in its sophisticated risk management. The development of its risk strategy is embedded in the annual planning cycle, and hence in Munich Re’s business strategy.

The risk strategy is approved by the Board of Management and discussed regularly with the Supervisory Board. Furthermore, our internal control system (ICS) is a uniform worldwide system for managing operational risks integrated across all risk dimensions and areas of the Group. It both meets Group management needs and complies with local regulations.
Group annual report 2013
“Risk report”: p. 109 ff.
Download (PDF, 9.3 MB)

CR portal
Risik management

Corporate website (Risik management)
munichre.com
Full
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses

Munich Re joined the United Nations Global Compact in August 2007 and is a signatory to the German Charter of Diversity (Charta der Vielfalt).

In April 2006, Munich Re became the first German company to sign the UN Principles for Responsible Investment (PRI). As chair of the Principles for Sustainable Insurance (PSI) Working Group, we have been actively promoting and supporting the efforts to establish a common framework of principles for the insurance industry, which we duly signed in June 2012. In addition, Munich Re supports a range of other international and national CR initiatives and organisations.

Munich Re is also involved in thehe International Strategy for Disaster Reduction (ISDR),) which aims to strengthen the resilience of nations and communities to disasters.
CR portal
Memberships and cooperations
Objectives and measures
Full
4.13 Memberships in associations and/or national/international advocacy organisations

Munich Re is represented in and actively contributes to numerous associations, interest groups and organisations.
CR portal
Memberships and cooperations
Full
4.14 List of stakeholder groups engaged by the organisation

The main Munich Re stakeholder groups are shareholders, staff, clients (including brokers), analysts, investors, rating agencies, media/press, scientists, non-governmental organisations (NGOs), representatives from politics and administration, trade unions and interested members of the public.
CR portal
Stakeholder dialogue
Memberships and cooperations

Full
4.15 Basis for identification and selection of stakeholders with whom to engage

Munich Re has always placed great emphasis on transparency and dialogue with its stakeholders, including insurance and reinsurance clients, the media and general public, employees, and capital market players, as well as NGOs, political entities and trade unions. Identification and selection of stakeholders are the responsibility of different departments, including Investor Relations (investors and analysts, rating agencies); Group Development – Corporate Responsibility (society, SRI contacts, NGOs); Group Communications (press relations); Human Resources (employees, trade unions); and the Munich Re business units (customers).
CR portal
Stakeholder dialogue
Memberships and cooperations
Full
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Communication with our stakeholders at local, national and international level is our basis for responsible action.

Responsibility for stakeholder dialogue is decentralised to ensure frequent in-depth engagement that systematically informs Munich Re’s decision-making.
CR portal
Stakeholder dialogue
Memberships and cooperations
Full
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through reporting

The different expectations and needs of the stakeholder groups are ascertained by means of ongoing direct dialogue and through studies and surveys/questionnaires. For instance, client surveys are carried out regularly and their results critically reviewed by Munich Re. Prime concerns raised by Munich Re’s stakeholders include transparency and climate change. Munich Re addresses the concern of climate change, for example, by offering specific (re)insurance products, intensifying research into the effects of climate change, and investing in assets with reduced climate risks.
CR portal
Stakeholder dialogue
Climate change
Full

Economic performance indicators

GRI No./
(GC*)
Performance indicator / Brief answer Link Degree of compliance
EC (1,4,6,7) Management approach

Turning risk into value – that is what Munich Re has been doing successfully for around 130 years. As an integrated insurance and reinsurance group, Munich Re adopts an international and interdisciplinary approach with a view to finding solutions for the future that are viable for our company, our clients and investors, and other stakeholders.
Group annual report 2013
“Our strategy”: p. 14 ff.
Download (PDF, 9.3 MB)
Full
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Summary of the figures for the financial year 2013
The return on risk-adjusted capital (RORAC) was 12.2% for the 2013 financial year, compared with 13.2% in 2012. The RORAC for 2013 was thus below our long-term target of 15%. This target, which we set for the first time in 2006 when market interest rates were significantly higher, is very difficult to reach in the current low-interest-rate environment. However, we significantly exceeded our profit target of close to €3bn for 2013, which is equivalent to a RORAC of around 11%.

We would like our shareholders to participate again in our gratifying result againand therefore proposed to shareholders at the Annual General Meeting payment of a dividend of €7.25 (€7.00) per dividend-bearing share.

Personnel expenses
The following personnel expenses are included in the operating expenses, in the expenses for claims and benefits (for claims adjustment) and in the investment result (please see Group annual report, page 267):
Breakdown of personnel expenses in 2013
Wages and salaries: €2,733m
Social security contributions and employee assistance: €487m
Expenses for employees' pensions: € 215m
Total: €3,435m

Donations and social investment
Munich Re Group CC spending in 2013: €9,025.67,50
Additional spending such as donations in kind, donations to political parties MR, corporate volunteering hours and the three foundations are not included.

From 2011 on, political donations have been evenly and transparently distributed between all non-extreme parties:
Munich Re Group: €150,000.
Reinsurance and primary insurance (ERGO) each donate €15,000 to each of the main political parties in Germany (CDU, CSU, SPD, Die Grünen, FDP).

In addition, ERGO donates another €18,000 to political organisations closely affiliated with the above-mentioned parties, such as Wirtschaftsrat CDU e.V.

Donations in kind amounted to €30,764.12.

The projects and activities of Munich Re's three foundations (Munich Re Foundation, Dr. Hans Jürgen Schinzler Foundation, and the ERGO Foundation "Youth&Future") demonstrate how we can provide active support and deliver effective solutions for global, social and scientific challenges.

Project funding of the three foundations: €1,864,032.97.
Group annual report 2013
“Key figures (IFRS)”: cover page 2;
“Business performance”: p. 65 ff.;
“Notes to the consolidated balance sheet – Equity and liabilities”, p. 214
Download (PDF, 9.3 MB)

CR portal
Corporate Citizenship
Facts and figures
Full
EC2
(7)
Financial implications and other risks and opportunities for the organisation’s activities due to climate change

Munich Re's core business is to cover risks, including climate change risks. Since climate change modifies the probable distribution of weather-related losses, it can directly affect our business

As a global risk carrier, we therefore have to factor the risk changes into our underwriting, and have our own team of geo risks experts that constantly update our knowledge of the direct impacts of climate change. We have set up climate-change early-warning systems and teams to monitor signs of any effects the phenomenon may be having on society, the environment, the economy and our political and legal systems. Climate change is part of risk assessment and cannot be isolated from the overall product and pricing. Currently and in the future, climate change and its related implications will lead to a general increase in demand for insurance solutions and consultancy services. This will result in new business potential for Munich Re.

To address the physical effects of climate change on our clients, we are developing insurance covers or other risk solutions. This is part of our usual business activities, and hence does not incur additional costs. Our insurance products are customer-tailored and differ widely according to the client’s needs and the specific risk.
CR portal
Insurance solutions for renewable energies
Power from the desert
RENT project
Climate change
Solutions

Group annual report 2013
“Climate change”: p. 126 ff.
Download (PDF, 9.3 MB)

Website (Climate change)
munichre.com
Full
EC3 Coverage of the organisation's defined benefit plan obligations

Munich Re companies generally give commitments to their staff in the form of defined contribution plans or defined benefit plans. The type and amount of the pension obligations are determined by the conditions of the respective pension plan. In general, they are based on the staff member's length of service and salary. Company pensions are a central component of our human resources policy.
Group annual report 2013
“Other accrued liabilities”: p. 176 f.
Download (PDF, 9.3 MB)
Full
EC4 Significant financial assistance received from government

None
  Full
EC5
(1)
Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation

Munich Re salaries are substantially above the local minimum wage level. In general, Munich Re pays wages that are higher than the local minimum wages (where they exist). In 2013, it paid €2,733m in salaries and wages (excluding social security and pension benefits).
Group annual report 2013
“Personnel expenses”: p. 267
Download (PDF, 9.3 MB)
Full
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

As our core business has separate business lines (reinsurance and primary insurance [ERGO]), we have two units in charge of handling our procurement processes. Both have Group-wide responsibility for their business line and they work closely together in order to exchange know-how and exploit synergies. Activities are based on the same principles, but with local freedom of application. Throughout the Group, adherence to the highest ethical and environmental standards is axiomatic and is clearly stipulated in our Code of Conduct. The evaluation of tenders favours local suppliers by gaining them extra points in the evaluation process.

Reinsurance
An internal guideline stipulates the inclusion of a Corporate Responsibility clause in all new or renegotiated contracts. This clause requires our business partners to comply with UN Global Compact principles. We see it as our duty to extend this commitment to our suppliers and appeal to them to observe these principles and standards, which are as follows:

Complying with the relevant laws
Adhering to the basic principles of human rights, labour law, environmental protection and anti-corruption

2.1 Protecting human rights
2.2 Complying with labour standards
2.3 Contributing to environmental protection
2.4 Stopping corruption

Applying these principles to the supply chain
The corporate responsibility clause is currently only applicable at our Munich headquarters, covering approx. 90% of overall spending, but will be implemented further through a graduated scheme.

Primary insurance
The ERGO Purchasing Guideline for Work and Services is mandatory for all supplier relationships. Among other important aspects, it outlines that for a formal tender, a self-disclosure by the provider is mandatory before it becomes a supplier. Furthermore, a detailed supplier self-disclosure (including various questions related to environmental aspects and environmental certificates) is required for a purchasing volume of €1m or more.
  Full
EC7
(6)
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation

Our staff are recruited primarily on the local labour market unless a shortage of people with appropriate skills obliges us to look elsewhere – nationwide or internationally. Munich Re complies with the applicable local labour laws and regulations. Most members of our Board of Management started their career at Munich Re. Jobs in our international organisation are advertised on our global intranet and we operate a talent development programme under which specialist and management staff at all levels are temporarily seconded to Munich Re offices in other countries.
CR portal
Training and development
Full
EC8 As a group operating internationally, Munich Re accepts its responsibility to the communities in which we live and work, investing in projects that have a positive impact on the infrastructure and therefore serve the public interest. In general, we pursue two approaches:

– Public-private partnerships (PPP), e.g. CLIMBS
– Microinsurance, e.g. HDFC ERGO  

Structural or economic change processes, such as those resulting from climate change, new legislation, more complex supply chains or outsourcing, offer new opportunities. For instance, our reinsurance activities support the development of new energy infrastructure projects (e.g. covers for photovoltaic modules and additional financing choices for solar parks and other customers).

Cooperating closely with important players (e.g. MFIs and NGOs), Munich Re is also active in the microinsurance segment. We analyse selected markets and develop insurance solutions that meet commercial requirements while simultaneously helping the disadvantaged to achieve access to appropriate financial solutions.

The Dr. Hans-Jürgen Schinzler Foundation and the Munich Re Foundation are actively engaged in pro bono and community investments.
CR portal
Microinsurances (Reinsurance)
Microinsurances (Primary insurance)
Insurance concepts for renewable energies

Corporate website
Munich Climate Insurance Initiative
CLIMBS

ERGO website
ERGO microinsurance
   
Full
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts

We use our knowledge to come up with solutions that meet the needs both of our clients and of society and its financial structures, since insurance only works if the risks – including indirect economic impact – can be calculated.

Renewable energies: The principal risk drivers for investments in renewable energies are technology and geographical factors. Assessing these risk drivers is the daily business of our insurance experts. One of the key objectives of the RENT (Renewable Energies and New Technologies) initiative is therefore to use this know-how as a basis for investment decisions. As part of this investment programme, MEAG is investing in German power grids and solar plants in Italy and Spain. By the end of the 2013 financial year, these investments had reached a total of €1.5bn. In the coming years, Munich Re intends to invest €4bn in infrastructure, renewable energy and new technologies, provided that the parameters are reliable and an appropriate return can be generated.

Climate change: Munich Re is a financial and insurance sector leader in the field of climate-change analysis. We are taking steps to avoid greenhouse gas emissions in our own business operations, one of our major objectives being to achieve carbon neutrality in our reinsurance operations worldwide by 2012 and at Group level by 2015.
CR portal
Insurance solutions for renewable energies
RENT project
Climate change
Full

Environmental performance indicators

GRI-No./
(GC*)
Performance indicator / Brief answer Link Degree of compliance
EN
(7-9)
Management approach

Preserving our natural resources is part of corporate responsibility management, as our economic success is inseparably linked with protecting people, the environment, and physical resources. We aim to reduce as far as possible the environmental impact directly and indirectly arising from our business operations, as well as to sensitise our staff to the relevant issues.

Preserving our natural resources is part of corporate responsibility management, as our economic success is inseparably linked with protecting people, the environment, and physical resources. We aim to reduce as far as possible the environmental impact directly and indirectly arising from our business operations, as well as to sensitise our staff to the relevant issues.

We are seeking to keep our direct environmental impact to an absolute minimum. This commitment is laid out in our mission statement approved by the Munich Re Board of Management in 2011. It is our Group-wide strategy and target to reduce greenhouse gas emissions by 10% per employee by 2015 (by means of our environmental management system [EMS] and on the baseline of 2009 emissions) and also to become carbon-neutral. Since 2009, carbon neutrality has been achieved for Munich Re’s headquarters in Munich. ISO 14001 certified environmental management systems have been introduced at several sites (coverage approximately 38%), with a particular commitment from our operations in Germany, the UK and Spain. We are seeking to achieve our environmental goals in accordance with the highest technical standards wherever economically feasible. In general, we report on relative numbers according to our employees; in the GRI table, we report on absolute and extrapolated figures.

As a reinsurer, insurer and asset manager, Munich Re’s acknowledges the indirect impact we have through our business activities and transactions. Munich Re is therefore committed to good-practice business principles that favour low-impact projects and activities, as well as investments that meet Munich Re’s sustainable investment criteria.
CR portal
Environmental management
Climate protection
Operational ecology
Environmental indicators
Guiding principles
Full
EN1
(8)
Materials used by weight or volume

As Munich Re is a provider of servicesprovider, its consumption of materials is limited. Major consumption occurs for paper, amounting to 11,663 tonnes in 2013.
CR portal
Operational ecology
Environmental indicators
Full
EN2
(8, 9)
Percentage of materials used that are recycled input materials

52% of paper consumed in 2013 was from recycled sources.
  Full
EN3
(8)
Direct energy consumption by primary source

We consumed 208,249 MWh of direct energy in 2013 (mainly heating oil, gas and diesel for back-up generators), including 56% from renewable energy sources (electricity and heat we generate ourselves).
CR portal
Climate protection
Operational ecology
Environmental indicators
Partial
EN4
(8)
Indirect energy consumption by primary source

We consumed 270,349 MWh of indirect energy in 2013 (mainly electricity and district heating), including 64% from renewable energy sources/green electricity).
CR portal
Climate protection
Operational ecology
Environmental indicators
Partial
EN5
(8, 9)
Energy saved due to conservation and efficiency improvements

Munich Re Group companies resolutely strive to conserve resources and consume less energy. This is a big part of our Munich Re Group commitment to achieve by 2015 a reduction of 10% in our emissions globally (based on 2009 emissions) by means of our environmental management system [EMS] and also to become carbon-neutral.


Two projects illustrate the efforts undertaken across the Group. At Munich Reinsurance America, a 2.5-MW solar power system was built on a carport structure, reducing annual electricity costs by almost $500,000.

Additionally, Munich Re takes account of green building standards in its real estate management, for example Maria-Josepha-Straße. The GreenBuilding certification awarded confirms that a building undercuts the 2007 German Energy Saving Ordinance limit by more than 25% and is conferred on the owners of commercial buildings whose energy-saving designs promote sustainability.
CR portal
Climate protection
Operational ecology
Environmental indicators
Partial
EN6
(8, 9)
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

Our innovative insurance solutions provide opportunities for our clients to make sustainable investments. We are firmly committed to finding innovative coverage concepts for new and complex risks, as well as integrated solutions In addition, Munich Re’s asset management focuses on assets that meet defined CR criteria, thereby ensuring that preference is given to. In addition, Munich Re’s asset management focuses on assets that meet defined CR criteria, thereby ensuring preferred investments in companies that in turn provide products and services with sustainability credentials.

Offshore wind parks, solar and geothermal installations and energy-efficiency technologies are possible only if the risks are insured. As a reinsurance company, Munich Re enables such projects to take place by offering productivity risk insurance, and actively monitors the complex and ever-changing factors that determine the insurability of relevant projects.

In 2009, our reinsurance group and MEAG set up the RENT (Renewable Energies and New Technologies) project. Since then, experts from the reinsurance group and MEAG have been sounding out the potential for strategic investment in renewable energy and new technologies. By the end of the 2013 financial year, these investments had reached a total of €1.5bn. In the coming years, Munich Re intends to invest €4bn in infrastructure, renewable energy and new technologies, provided that the parameters are reliable and an appropriate return can be generated.

Munich Re clients seeking sustainable investment options can choose from insurance and investment funds such as MEAG’s successful climate strategy (“Klimastrategie”) fund which is made up of a selection of global companies whose operations are designed to curb climate change by cutting carbon emissions or to promote sustainable development.
CR portal
RENT project
Insurance solutions for renewable energies
Eco-friendly insurance solutions
Asset management
Climate protection
Full
EN7
(8, 9)
Initiatives to reduce indirect energy consumption and reductions achieved

Munich Re is striving to reduce indirect energy consumption by, for example, replacing business trips with telephone and video conferences where possible.

At Munich Reinsurance Company, a guideline encourages the purchase of low-impact and fuel-saving company cars. ERGO encourages eco-efficient driving by informing and sensitising employees and offering an "eco driving course". Besides this, there are plans at ERGO for an increased integration of environmental issues in training events and projects for staff to raise awareness and motivation (e.g. alternatives to business travel “Dienst statt Reisen” or with “Bike to Work”, ERGO intranet links, online training tools, and ERGO carpooling).
CR portal
Climate protection
Operational ecology
Full
EN8
(8)
Total water withdrawal by source

As a financial services provider, Munich Re is not a water-intensive company. Total water withdrawal at Group-level by source: 731,916m³
Rain water: 0.025%
Natural water: 1.1739%
Tap water: 98.236%
CR portal
Operational ecology
Environmental indicators
Full
EN9
(9)
Water sources significantly affected by withdrawal of water

Munich Re companies only use local suppliers.
  Full
EN10
(8, 9)
Percentage and total volume of water recycled and reused

This indicator is of limited relevance for companies in the insurance sector, since most of their operations are office-based. Therefore no water is recycled nor reused at our sites.

Toilets at our offices in Munich are flushed with rainwater.
  Not material / Not applicable
EN11
(8)
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

This indicator is not applicable to Munich Re.
  Not relevant
EN12
(8)
Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

In our guiding principles for corporate responsibility and our Code of Conduct, we undertake to help protect our natural environment.
Biodiversity plays a role particularly in connection with Munich Re’s liability insurance. Munich Re is working on new covers for biodiversity risks, which will, for example, trigger prevention measures.
  Not relevant
EN13
(8)
Habitats protected or restored

No data are available for this indicator due to its limited relevance for companies in the insurance sector.
  Not relevant
EN14
(8)
Strategies, current actions, and future plans for managing impacts on biodiversity

Munich Re does not have Group-wide strategies in this respect.
  Not relevant
EN15
(8)
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

No data are available for this indicator due to its limited relevance for companies in the insurance sector.
  Not relevant
EN16
(8)
Total direct and indirect greenhouse gas emissions by weight

Our total direct and indirect greenhouse gas emissions came to 124,092 t CO2e in 2013 (primary energy consumption, electricity, district heating and company cars/vehicle fleet) 2013.
CR portal
Climate protection
Environmental indicators
Full
EN17
(8)
Other relevant indirect greenhouse gas emissions by weight

Other relevant indirect greenhouse gas emissions totalled 49,432 t CO2e in 2013 (from paper and water consumption, waste and travel) 2013.
CR portal
Environmental indicators
Full
EN18
(7-9)
Initiatives to reduce greenhouse gas emissions and reductions achieved

Our Group-wide environmental activities are focused on reducing greenhouse gas emissions, and we adopted a carbon-neutrality strategy in 2007.

Munich Re (reinsurance) in Munich has been carbon-neutral since 2009. All our international reinsurance operations had followed suit by 2012, and the whole Munich Re Group will do so by 2015, with a reduction of 10% in our emissions globally. To this end, we are pursuing a twofold strategy of both increasing energy efficiency and purchasing green electricity rather than a conventional energy mix. We will make up for inevitable emissions through the purchase and/or retirement of emission credits.
CR portal
Climate protection
Environmental indicators
Full
EN19
(8)
Emissions of ozone-depleting substances by weight

Use of ozone-depleting substances is not a major issue for us. Although they may be present in our air-conditioning, we have closed-circuit systems, and maintenance work is subject to the requisite precautions, preventing the release of such substances into the atmosphere. Consequently, no Group-wide data records are available. Our Group-wide environmental activities are focused on reducing greenhouse gas emissions (and above all carbon dioxide).
  Not relevant
EN20
(8)
NOx, SOx, and other significant air emissions by type and weight

Our environmental management system controls, and emission-reduction programmes concentrate on greenhouse gases. Munich Re operates solely as a service provider, and does not release significant NOx, NOx, SOx, or other significant air emissions.
  Not relevant
EN21
(8)
Total water discharge by quality and destination

This is not material for an office-based financial service provider. Therefore no Group-wide data records are available. Apart from a small quantity used to irrigate the grounds, all the water is used for drinking, cooking, cleaning or sanitation, and is discharged into sewers. Munich Re therefore estimates its total water discharge to be no more than its total water use.
  Full
EN22
(8)
Total weight of waste by type and disposal method

We produced 1111,502 tonnes of waste in 2013. The breakdown by type and disposal method is as follows:


Breakdown by disposal type in %
Recycled (valuable) hazardous materials 0.28%
Recycled (valuable) non-hazardous materials 61.42%
Hazardous waste incinerated 0.01%
Non-hazardous waste incinerated 18.15%
Hazardous waste to landfill 0.07%
Non-hazardous waste to landfill 9.46%
Special hazardous waste treatment 0.01%
Special non-hazardous waste treatment 1.58%
Organic waste 6.11%
Other waste, not specified 2.91%
CR portal
Climate protection
Environmental indicators
Full
EN23
(8)
Total number and volume of significant spills

There were no significant spills of hazardous materials during the reporting period. Our activity as a financial services provider entails very little contact with hazardous materials and significant spills are thus unlikely.
  Full
EN24
(8)
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Munich Re works with certified waste disposal entities that guarantee the correct transfer and processing of waste.
  Not relevant
EN25
(8)
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation’s discharges of water and runoff

The waste water we produce is discharged into the public sewerage systems, and we assume that it has no effect on biodiversity other than that which normally arises in connection with this type of discharge.
  Full
EN26
(7-9)
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

Our innovative insurance solutions enable our clients to make sustainable investments. We are firmly committed to devising innovative coverage concepts for new and complex risks together with integrated solutions. A number of our insurance and reinsurance solutions help to mitigate environmental impacts.

Munich Re has long advocated the promotion and development of renewable energy and emission reductions. This gave rise to an ambitious industrial initiative established in conjunction with the DESERTEC Foundation in 2009: Dii GmbH. The idea behind the initiative is to generate electricity in those areas (e.g. North Africa) where a virtually limitless supply of renewable energy is available, and subsequently transport it to the countries that consume it.

Furthermore, we have specialised departments working constantly on innovative insurance solutions, such as an insurance concept covering the exploration risk of a geothermal energy project in Taufkirchen, near Munich. At present, Munich Re is assessing the US market with a view to marketing such products and is currently involved in intensive negotiations with four projects in the states of Nevada and California.

In 2009, our reinsurance group and MEAG set up the major RENT (Renewable Energies and New Technologies) project, with a target investment volume of €2.5bn. Since then, experts from both reinsurance and asset management have been sounding out the potential for strategic investment in renewable energy and new technologies (for more details please see EN6). By the end of the 2013 financial year, these investments had reached a total of €1.5bn. In the coming years, Munich Re intends to invest €4bn in infrastructure, renewable energy and new technologies, provided that the parameters are reliable and an appropriate return can be generated.
CR portal
Insurance solutions for renewable energies
Eco-friendly insurance solutions
Strategies for responsible investments
Climate change
Power from the desert
   
Full
EN27
(8, 9)
Percentage of products sold and their packaging materials that are reclaimed by category

No data are available, as this does not apply to companies in the insurance sector.
  Not relevant
EN28
(8)
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

This does not apply to companies in the insurance sector, as we do not have production sites but office buildings. Therefore no fines were paid.    
  Full
EN29
(8)
Significant environmental impacts of transporting products and other goods and materials used for the organisation's operations, and transporting members of the workforce

Business travel totalled 308,847,652 km in 2013. Environmental impacts caused by business travel are unavoidable in the insurance sector. Where possible, internal meetings are held in the form of telephone and video conferences to avoid business travel.

See also examples under EN 7.
CR portal
Environmental indicators
Partial
EN30
(7-9)
Total environmental protection expenditures and investments by type

Environmental protection expenditure is largely embedded in overall operational business expenditure, and is therefore without dedicated budgeting and reporting. Thus in most cases, it is not possible to determine the exact amount expended for regular maintenance that is also environmentally beneficial. Furthermore, numerous activities that help reduce Munich Re's environmental impact do not involve any expense.
CR portal
RENT project
Partial

Social performance indicators

GRI-No./
(GC*)
Performance indicator / Brief answer Link Degree of compliance
  Labour practices and decent work performance indicators
Unless otherwise stated, the figures given in the following tables cover approximately 70% of employees. Further details are available under in the “Facts and figures” section.
LA
(1, 3, 6)
Management approach.

Our staff provide the basis for our success with their competence, motivation and commitment. We are consistently committed to investing in their development and provide all staff with equal opportunities and top-quality working conditions.
 
We strive to recruit the best staff we can and to fill them with enthusiasm for the global business of dealing with opportunities and risks. In our international human resources work and strategic workforce planning, our focus is on the individual. Flexible work models, special conditions for employees with children, the promotion of healthcare, and social counselling services are just some of the factors that make Munich Re a respected employer. Equal treatment is an inherent part of our corporate culture.

In the last few years, the Board of Management has positioned diversity as a strategic issue for the Group. To underscore this, Munich Re has launched an international project aimed at formulating Group-wide parameters and a Group-wide diversity concept steered by an international Munich Re diversity council. The intention of this framework is to show how we define diversity strategically at Group level and give recommendations to Munich Re’s subsidiaries. At ERGO, a diversity project has been launched that is strongly aligned with the Group focus, which provides for mutual benefit.

At international level, we already have initiatives relating to family concerns in many places. For example, some units have employees who work from a home office, some provide childcare discounts or make available childcare options, and others offer employee assistance programmes for work-life balance and similar issues.
CR portal
Munich Re as an employer
Full
LA1 Total workforce by employment type, employment contract and region

As at 31 December 2013, Munich Re employed a total of 44,665 staff, 11,315 of these in reinsurance (including Munich Health staff), 29,595 in primary insurance and 842 in asset management.

Staff by employment contract at offices of Munich Re in 2013:
Staff members with temporary employment contracts: 5.2%
Staff members with open-ended employment contracts: 94.8%

Distribution of Munich Re staff by region (2013):
Germany: 52.1%
Rest of Europe: 30.9%
North America: 13.9%
Latin America: 1.5%
Asia and Australasia: 1.33%
Africa, Near and Middle East: 0.3%
CR portal
Munich Re as an employer
Work-life balance
Employee indicators

Corporate website (Staff)
munichre.com
Partial
LA2
(6)
Total number and rate of employee turnover by age group, gender and region

The weighted average turnover rate was 10.6% in 2013.

Monitoring detailed turnover rates at Munich Re is a task of the decentralised units. Also, turnover categories often refer to local or company-specific regulations. Munich Re therefore does not aggregate detailed turnover data from the different decentralised units.
CR portal
Munich Re as an employer
Employee indicators
Partial
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations

Munich Re does not differentiate between benefits provided to full-time staff and those provided to part-time staff.

Munich Re offers its staff various benefits, the nature and scope of which are determined on an individual company basis and not centrally. At Munich Re, additional benefits have a long-standing tradition and we attach great importance to them. They are part and parcel of our overall remuneration concept and mirror our corporate culture.

Family-friendly work measures are also determined on a decentralised basis. Company childcare centres have reserved places for employees' children, which helps our staff return to qualified positions. In addition, independent family services offer assistance in securing tailor-made care for children of staff or for other family members.
CR portal
Work-life balance
Full
LA4
(1, 3)
Percentage of employees covered by collective bargaining agreements

96% of our German employees are represented by an independent trade union or covered by collective bargaining agreements.

We do not keep any record of employees' union memberships. Both MR Munich and ERGO are members of the Employers' Association for Insurance Companies in Germany and therefore subject to the association's collective bargaining agreements; the same terms and conditions apply to both union and non-union members. Employees' interests are represented by a staff council elected by the members of staff. Since July 2007, there has been a Group-wide staff council in addition to the different company staff councils. Besides this, there are employee representatives on the Supervisory Board. In addition, Munich Re is a member of the UN Global Compact and supports all its principles. Since 2013, the Code of Conduct has also included a reference to the UN Global Compact.
  Full
LA5
(3)
Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

In the event of operational changes, the Staff Council is duly informed of the action planned in accordance with its right to information, so that it can have a say in whether, when and how such changes are effected.
  Full
LA6
(1)
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes

Data coverage: Germany (Munich Re Munich, ERGO, MEAG): 100% in-house staff/ MR America: 100%
All of Munich Re’s activities/actions in its various lines of business are based on the same principles, but with local freedom of application. Since employee care is of utmost importance for MR, we have different systems and approaches at local level.
CR portal
Health at the workplace
Full
LA7
(1)
Rates of injury, occupational diseases, lost days and absenteeism and number of work-related fatalities by region

In 2013, the level of sick leave throughout Munich Re was 4.4%.

The number of occupational accidents is not recorded centrally. As a financial services provider, our exposure to occupational accidents and work-related fatalities is very low.
CR portal
Health at the workplace
Employee indicators
Partial
LA8
(1)
Education, training, counselling, prevention and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases

As part of their responsibility as employers, Munich Re companies help their staff to look after their health and maintain it in the long term. Consequently, all the legal requirements in respect of health and safety at work are met and additional measures offered such as counselling and training programmes on stress management, ergonomic working conditions and similar issues.

The measures are initiated and coordinated by the individual companies within Munich Re and not centrally. A substantial number of Munich Re sites have their own company medical officers who provide education/training, monitoring and accident prevention.

Since 2001, Munich Re Munich has had a health and safety committee for Munich Re Munich that goes far beyond legal requirements and is integrated into its risk management system.
CR portal
Health at the workplace
Full
LA9
(1)
Health and safety topics covered in formal agreements with trade unions.

Each company discusses safety at work issues with its own employee representatives. The relevant statutes are applied.
  Partial
LA10 Average hours of training per year per employee by employee category

In 2013, the average number of training days per employee for Munich Re Group was 2.7.
The average hours per employee category are not tracked in our reporting system.
CR portal
Training and development
Employee indicators
Full
LA11 Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

We give high priority to staff training and personal development. Munich Re advocates lifelong learning. We offer a wide range of training options across our Group. Munich Re fosters key-skill and specialist staff training by organising focused and personal training measures. Training options further include modern e-learning platforms accessible to staff worldwide.
CR portal
Training and development
Full
LA12 Percentage of employees receiving regular performance and career development reviews

Performance appraisals are part of Munich Re’s performance management system. Employees and managers set objectives that are reviewed on a regular basis. Personnel development initiatives are part of the annual appraisal interviews. This is valid for the whole Munich Re Group, including reinsurance, primary insurance (ERGO), Munich Health and MEAG.

Most of the staff in Munich Re’s international organisation have regular performance appraisals.
CR portal
Fair and performance-related remuneration
Full
LA13
(1, 6)
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity

Staff diversity is a key aspect of Munich Re’s corporate culture.

In 2013, 54.1% of Munich Re employees were female. The proportion of females in management positions has been rising in recent years, and amounted to 30.2% in 2013.

Munich Re staff by age (2013):
20 and under: 15.2%
31 to 50: 61.8 %
50 and over: 23%

In some of the countries where we operate, employers are prohibited by law from asking employees questions about minority group membership.
CR portal
Diversity
Employee indicators


Group annual report 2013
“Staff”: p. 103 ff.
Download (PDF, 9.3 MB)
Full
LA14
(1, 6)
Ratio of basic salary of men to women by employee category

Our policy on salary determination is not based on gender but on individual expertise, experience and market-based criteria. The Group's remuneration practices are strictly independent of any diversity factors including a person's gender; hence we do not differentiate between men and women in our remuneration system. This guidance on non-discrimination/social conduct is specified in our codes of conduct.
CR portal
Diversity


Download
Code of Conduct (PDF, 354 KB)
Not reported
  2. Human rights    
HR
(1-6)
Management approach

Observance of human rights is axiomatic for Munich Re. This commitment is manifested for example in Munich Re’s participation in the United Nations’ Global Compact initiative (since 2007) and the UNEP FI Principles for Sustainable Insurance (PSI) Initiative as well as the Principles on Responsible Investments (PRI).

In August 2007, Munich Re joined the Global Compact of the United Nations, the first six principles of which explicitly address human and labour rights. Our membership of the UN Global Compact is indicative of our commitment to human rights.
Corporate responsibility and in particular the commitment to the UN Global Compact are inherent to the strategy of Munich Re (Group). Furthermore Corporate Responsibility is part of the Core Principles of MR Group. Both are under the authority of the CEO's division.

Munich Re (Group) treats the topic of human rights from four perspectives:
1) How we deal with our own employees
2) Supplier management
3) Our core businesses of insurance and reinsurance
4) Munich Re (Group) investments.

Munich Re is an active member of the UN Global Compact and a member of its Peer Learning Group on Human Rights. Our goal is to discuss current national and international developments and best practices, and to learn from others.

Our Code of Conduct specifies that we expect our employees to observe the personal dignity, privacy and personality rights of every individual. We do not tolerate any discrimination (on grounds of age, sex, ethnic origin, nationality, political opinion, race, religion or the like), sexual harassment, other personal harassment, or insulting behaviour. Neither do we tolerate any intimidation or violence, or the threat thereof. This is underlined by a new reference to the UN Global Compact within our Code of Conduct.
CR portal
Compliance
Risk management
Full
HR1
(1-6)
Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

In our asset management, we follow the Principles for Responsible Investment (PRI) throughout our Group. Munich Re was the first German company to sign the PRI, and played a prominent role in helping to establish it.

Based on the PRI, our General Investment Guidelines stipulate that the vast majority of our own investments in shares, bonds, real estate (from 2010) and investments in the RENT project should satisfy sustainability criteria that include human rights aspects.

In addition, MEAG offers its clients two investment products that take account of sustainability criteria. These sustainability funds enable clients to invest in accordance with the principles of socially responsible investing (SRI).
CR portal
Managing Investments
Objectives
Asset management


Group annual report 2013
page 32
Download (PDF, 9.3 MB)
Full
HR2
(1-6)
Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

In our procurement policy, we consider economic, ecological and social aspects, which include human rights.

A corporate responsibility clause (Munich Re reinsurance group only) is included in all new and renegotiated contracts with suppliers and service providers, obliging suppliers and providers to comply with the ten principles of the UN Global Compact within the reinsurance group. In 2013, Central Procurement concluded contracts covering about 90% of the overall spend with German suppliers, who have to comply with the basic principles of the UN Global Compact like human rights, labour law and anti-corruption that are laid down in German legislation.

A detailed supplier self-disclosure – including various questions related to environmental aspects and environmental certificates – is required for all purchase orders issued by ERGO. A pilot project on ESG due diligence of supplier contracts of more than €350,000 is taking up this aspect and will gradually expand to Group-wide level.
CR portal
Compliance
Full
HR3
(1-6)
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

To optimise the outcome of this value management, we provide training programmes on the Code of Conduct for our employees. Since the beginning of 2011, all employees in the reinsurance group have had access to an e-learning module on this topic. We expect employees to acquaint themselves with the contents and obligations of the Code of Conduct and test their knowledge of the areas that it covers.
CR portal
Compliance
Partial
HR4
(1, 2, 6)
Total number of incidents of discrimination and actions taken

Equal treatment and non-discrimination are enshrined in Munich Re’s Code of Conduct, with a direct reference to the UN Global Compact. Munich Re does not tolerate discrimination – whether based on age, gender, ethnic origin, cultural identity, religious beliefs, political opinions or similar grounds. Any incidents of discrimination and measures taken are recorded locally; Group Compliance follows these up and summarises the results in a report made available annually to the Board of Management.
CR portal
Compliance
Diversity
Partial
HR5
(1-3)
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights

In the period under review, no business operations were identified in which freedom of association and the right to collective bargaining were at risk.
CR portal
Compliance
Full
HR6
(1, 2, 5)
Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour

In the period under review, no business operations were identified in which there was a significant risk of child labour. This aspect is of little relevance in Munich Re’s business, as key units of the Group operate in countries where child labour is prohibited by law.
CR portal
Compliance
Full
HR7
(1, 2, 4)
Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour

In the period under review, no business operations were identified in which there was a significant risk of forced or compulsory labour. This aspect is of little relevance in Munich Re’s business, as key units of the Group operate in countries where such labour is prohibited by law.
CR portal
Compliance
Full
HR8
(1, 2)
Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of human rights that are relevant to operations

Munich Re’s Code of Conduct applies to 100% of its own security staff. For all external security personnel, the conditions of the new Purchasing Guidelines apply for reinsurance and require that all new supply and service contracts contain a Corporate responsibility clause based on the UN’s Global Compact.
CR portal
Compliance
Not applicable
HR9
(1, 2)
Total number of incidents of violations involving rights of indigenous people and actions taken

In the period under review, no business operations were identified in which the rights of indigenous peoples were violated. This aspect is of little relevance in Munich Re’s business.
CR portal
Compliance
Full
  3.Society    
SO
(10)
Management approach

For us as a global risk carrier, a prospective, prudent and responsible approach is self-evident. We therefore aim to take due account of economic, ecological and social requirements in our operations. That is why the coordination of corporate responsibility is located in our Group Development Division – to ensure that we meet the aforementioned aim both in our business and in our interaction with society.

Each Munich Re company has an effective anti-fraud management system in place. A corresponding directive sets out the specific duties and responsibilities that play an important part in preventing and combating fraud.
We also attach great importance to preventing and combating corruption and financial crime. Key guidelines are provided by our Code of Conduct, which specifies our rules for legally impeccable conduct, based on ethical principles, and describes our understanding of the relevant values.

We also exercise our corporate responsibility in the communities in which our operations are located. The focal points of our social commitment are the active promotion of science and the support of socially disadvantaged youngsters and people in need. For our international social commitment, we have designed a Group-wide corporate citizenship concept that contains concrete sponsorship criteria.
CR portal
Corporate governance
Compliance
Anti-fraud management
Corporate Citizenship
Full
  Aspect: Community    
SO1 Nature, scope, and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

This indicator has little relevance for Munich Re as a financial services provider: in contrast to other sectors of the economy, we have only a comparatively small impact on the local community with our office-based business operations.

Memberships are checked for their benefit/cost effectiveness and their specific outcome on a yearly basis by the Corporate Responsibility Department (within the Group Development Division) and by each department involved, as are donations and corporate responsibility sponsorship activities. The survey includes the expenses for CC and information on special projects and activities in this field. A network to foster contact and exchange between the different business units was implemented by the end of 2011. The evaluation of work/projects is also a key issue for the Munich Re Foundation (MRF), and all three of our foundations are part of our integral and holistic corporate responsibility. The Board of Trustees of MRF holds two meetings every year to systematically monitor project quality, risks and chances. The most recent evaluation of the foundation’s work was conducted by an external expert team (AgenZ, Frankfurt, Germany). Its summary attests successful work and good progress. The impact of our CR commitment is reflected in the increasing number of applications and demands for support, sponsoring, cooperation and partnerships in CR-related sectors at Munich Re.
  Not relevant
  Aspect: Corruption    
SO2
(10)
Percentage and total number of business units analysed for risks related to corruption

An anti-fraud analysis covering all business units and regions is conducted as part of the internal Group-wide risk-control system (ICS).
CR portal
Corporate governance
Anti-fraud management
Risk management
Full
SO3
(10)
Percentage of employees trained in the organisation’s anti-corruption policies and procedures

Our employees are regularly informed about the issues of anti-corruption and fraud in work instructions, courses and presentations. The aim of these programmes is to inform staffs about the main anti-corruption and anti-fraud rules, the essentials of the Anti-Corruption and Gifts & Entertainment Policies, and Munich Re’s anti-fraud principles. An expanded e-learning module for the reinsurance group on the Code of Conduct has been available to employees since August 2010.
CR portal
Corporate governance
Anti-fraud management
Full
SO4
(10)
Actions taken in response to incidents of corruption

We have largely completed the enhancement of our internal control system, a uniform worldwide system for managing operational risks integrated across all risk dimensions and areas of the Group that both meets Group management needs and satisfies local legal and regulatory requirements. In primary insurance, ERGO discloses information transparently on its corporate website regarding any wrongdoings, e.g. during incentive trips or incentive events.
CR portal
Corporate governance
Anti-fraud management
Risk management
ERGO transparency
Full
  Aspect: Public policy    
SO5
(1-10)
Public policy positions and participation in public policy development and lobbying

Munich Re has established a new unit within Group Legal (Governmental Affairs) to more effectively observe, assess and exert a constructive influence on the relevant developments and to actively communicate on a political stage. In Munich, Berlin and since 2011 Brussels, the unit coordinates a process that takes in all of Munich Re, assessing the relevant issues and developing positions valid for the entire Group.

A focal point of Munich Re’s lobbying activities concerns issues of national, European and international supervisory legislation. In addition, Munich Re assumes a leading role in connection with the Geneva Association. An example of our activities in this connection is climate change: in line with our sustainability goals and due to our long-standing expertise, we are involved in major international activities with regard to climate change. Munich Re is an acknowledged partner for policymakers, providing specialist knowledge and advice to shape mitigation and adaptation measures for combating climate change.

Moreover, Munich Re is the initiator of the Munich Climate Insurance Initiative (MCII) launched in 2005, and has been the sponsor of the MCII office on the United Nations University campus in Bonn since 2008. The MCII is made up of insurers, scientists, and non-governmental organisations. This wide-ranging group is united in the goal of formulating and putting in place insurance-related solutions for developing countries without functioning insurance markets in order to help combat the rising losses in these areas.
  Full
SO6
(10)
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

From 2011 on, political donations have been evenly and transparently distributed between all non-extreme parties:
Munich Re (Group): €150,000.

Reinsurance and primary insurance (ERGO) each donate €15,000 to each of the main political parties in Germany (CDU, CSU, SPD, Die Grünen, FDP).

In addition, ERGO donates another €18,000 to political organisations closely affiliated with the above-mentioned parties, such as Wirtschaftsrat CDU e.V.
  Full
  Aspect: Anti-competitive behavior    
SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes

For us, adherence to high ethical and legal standards is a matter of principle and regulated by our Code of Conduct. There were no cases of legal action against Munich Re for anticompetitive behaviour, anti-trust or monopoly practices in the reporting year.
Group annual report 2013
“Notes to the consolidated financial statements”: p. 153 ff.
Download (PDF, 9.3 MB)
Full
  Aspect: Compliance    
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

For us, adherence to high ethical and legal standards is a matter of principle and regulated by our Code of Conduct. As a consequence, Munich Re was not subject to any fines or sanctions in the reporting year.
Group annual report 2013
“Notes to the consolidated financial statements”: p. 153 ff.
Download (PDF, 9.3 MB)
Not reported
  4. Product responsibility    
PR
(1, 8)
Management approach

We are committed to high-quality reinsurance and primary insurance (ERGO) client management, maintaining close contact and regular communication with our clients, thus enhancing client satisfaction and client loyalty. Corporate responsibility plays a significant role in this exchange. The same commitment holds true for our asset management unit MEAG.

Through this constant exchange, Munich Re’s products, services and processes can be geared to the clients’ needs, and this enables us to meet their expectations of us as a quality provider. All client enquiries are treated with the same professionalism and integrity: our dealings with clients are always based on the same standards. Client data are handled with strict confidentiality, personal data being recorded and forwarded to others only with the client’s express agreement. Furthermore, in respect of all the services mentioned, it is important to note that consumer protection is of utmost importance. Data and information from and about customers are handled extremely carefully based on the local standards as a minimum. Our systems are in compliance with the strict German Data Protection Act.

With regard to our insurance operations, our customer sales service and advisory activities are regularly monitored and rated by external agencies and client surveys. Certificates and service ratings awarded by prominent market research institutes confirm high customer-satisfaction levels, showing that our qualified representatives give advice tailored to individual needs. Client satisfaction is also one of the key performance indicators incorporated in the balanced scorecard objectives of ERGO sales staff.
Munich Re connect
ERGO Service
Full
  Aspect: Client health and safety    
PR1
(1)
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Munich Re’s products are not tangible and therefore have no health and safety impacts. This indicator does not apply to our sector.
  Not relevant / Not applicable
PR2
(1)
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes

Munich Re’s products are not tangible and therefore have no health and safety impacts. This indicator does not apply to our sector.
  Not relevant / Not applicable
  Aspect: Product and service labeling    
PR3
(8)
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

Munich Re’s product and service range – from development and marketing to conclusion of the business – is subject to strict quality controls. Hence no significant product or service categories are covered by and assessed for compliance with such procedures.

To further clarify insurance terms and conditions, especially our primary insurance group ERGO has significantly improved the transparency of all documents. Customers receive all the information they need on the conditions of liability relating to their insurance protection in a clear and transparent format.
ERGO Full
PR4
(1)
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes

For us, adherence to high ethical and legal standards is a matter of principle and is regulated by our Code of Conduct.
  Not applicable
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

Munich Re’s client-focused approach is based on open dialogue with our reinsurance and primary insurance (ERGO) clients. As we have different client bases, each entity has its own customer satisfaction measurement.

In general, we measure Munich Re’s company image on a regular basis. For example, for reinsurance, we participate in important Flaspöhler studies (surveys conducted every two years for different regions), in which we have achieved top ratings.ratings The survey consists of questions about reinsurer utilisation, perceptions of reinsurers, products and services, reinsurer selection and associated topics, such as Solvency II. The results of the studies are summarisedsummarized for the Board of Management, and specific projects are set up with a view to constantly improving results. Broker surveys are also conducted, thus covering the other important client group in reinsurance.

Since 2007, on a yearly basis, customer satisfaction ratings for primary insurance (ERGO) have been monitored by an external market research institute, the results being incorporated in ERGO’s balanced scorecard. The German inspection agency TÜV has awarded ERGO’s highly professional client management a “good” rating for service and client satisfaction. ERGO’s claims management, which is subject to regular quality checks, claims audits and controls, is certified to Germany’s DIN EN ISO 9001 standard.
CR portal
Stakeholder dialogue

Group annual report 2013
“Clients and client relationships”: pp. 100 ff.
Download (PDF, 9.3 MB)
Full
  Aspect: Marketing communications    
PR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
We see it as our duty to ensure transparency and to present the terms, conditions and prices of our products and services clearly and coherently, carrying out regular checks of our marketing activities and advertisements to ensure they are understandable to clients.

The corresponding activities and procedures are governed by an internal Code of Conduct, which sets binding standards and rules, including a commitment to fair and open dealings with business partners and clients.

In a poll conducted by the experts of the German consumer magazine “Guter Rat” (“Good Advice”) and the Institut für Transparenz in der Altersvorsorge GmbH (ITA), the product information sheet from our primary insurer ERGO Lebensversicherung was voted the winner, as it was the easiest to understand compared to other providers’ information.

Since the reform of the German Insurance Contract Act in 2008, insurance policies must highlight all the key information to customers in product information sheets. The product information sheet acts as a simplified summary of the General Terms and Conditions of Insurance and should enable customers to understand exactly what they are signing. ERGO has committed itself to this specifically through its mission “To insure is to understand”. Furthermore, all ERGO sales agents have to comply with a special code of conduct.
  Full
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcome

For us, adherence to high ethical and legal standards is a matter of principle and is regulated by our Code of Conduct. To our best knowledge, no cases of non-compliance occurred during 2013.
Group annual report 2013
“Notes to the consolidated financial statements”: p. 153 ff.
“Munich Re Code of Conduct”: p. 24 ff.
Download (PDF, 9.3 MB)
Full
  Aspect: Customer privacy    
PR8
(1)
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

For us, adherence to high ethical and legal standards is a matter of principle and is regulated in our Code of Conduct and our safety regulations. To our best knowledge, Munich Re has not received any information about material breaches of privacy rules.
  Full
  Aspect: Compliance    
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

For us, adherence to high ethical and legal standards is a matter of principle. To our best knowledge, no cases of non-compliance occurred, and no fines were paid during 2013.
Group annual report 2013
“Notes to the consolidated financial statements”: p. 153 ff.
Download (PDF, 9.3 MB)
Full

Financial Services Sector Supplement

GRI-No./
(GC*)
Performance indicator / Brief answer Link Degree of compliance
  Financial sector indicators: Financial Services Sector Supplement (FSSS)    
FS1 Policies with specific environmental and social components applied to business lines

Understanding/quantifying ESG (environmental, social, governance) aspects and risks is crucial for insurance and reinsurance companies. How best to manage risks of change in long-tail business is key for our business. We analyse in depth all relevant trends as well as geo risks/climate change that influence the corresponding financial risks. As we factor our risk knowledge into our business development, risks are at the same time business opportunities. Early detection of risk is implemented in all product/market development; appropriate ESG risks are taken into account. Each department has experts to ensure that all future risks relating to specific products are identified, and specific expert groups and committees are in place.

Besides this, our Code of Conduct and compliance manual contain information on the main areas concerned with correct business practice in this context. The codes of conduct of all Munich Re Group companies lay down ESG (environmental, social, governance) criteria. Corporate responsibility hasis also been defined as one of our guiding core principles. Applying a refined corporate responsibility (CR) strategy, we use the UN Principles for Sustainable Insurance framework to integrate ESG aspects into our core business and asset management, providing a more structured approach to ESG topics. The process of identifying relevant ESG issues is managed by the CR Department. The first example was the development of a corporate policy on banned weapons. Currently, we are designingengineering ESG criteria for engineering in large infrastructure projects and for the further identification and handling of sensitive issues by the Group Corporate Responsibility Committee (GCRC). Our Group Risk Committee deals with matters such as early identification of issues of concern or constituting a risk to the Group as a whole, such as reputational and emerging risks.

Specific guidelines regarding the environment play a vital part in our environmental strategy, which is valid Group-wide.
CR portal
Management
Corporate governance
Managing investments
Full
FS2 Procedures for assessing and screening environmental and social risks in business lines

Early detection of risk is implemented in all product/market development. Where appropriate, ESG risks are taken into account. The Global Underwriting and Risk Committee (GURC) is responsible for the establishment and ongoing implementation of an appropriate risk management process in the business field of reinsurance to ensure that risks are quantified and entered into consciously and that sufficient capital is available to cover all the significant risks in that business field.

A key part of our Group-wide risk management being to detect future ESG risks for our core business, we analyse and monitor our markets in order to identify such risks. Munich Re’s ESG risk-identification systems are managed and monitored by Group-level functions. At the end of 2012, Group Corporate Responsibility Committee (GCRC), which covers all fields of business,) was established. It provides advice on the corporate responsibility commitments and activities of Munich Re (Group) and evaluates and prioritises sensitive issues. The committee members are from Group functions and include representatives from all fields of business (reinsurance, primary insurance and Munich Health) and from asset management (MEAG).

Munich Re has implemented a Reputational Risk Committee (RRC) in each field of business. The RRCs deal with reputational risk issues that arise in the course of our day-today business operations. Employees can refer critical cases to their respective RRC prior to closing a transaction. The committee members verify the acceptability of the planned business transaction and ensure that we do not take operational decisions involving reputational risks. Ready to convene at short notice, the committee can discuss an issue and recommend suitable action within 48 hours. Any new topic that emerges as a sensitive business issue in these discussions is referred to the GCRC for detailed assessment and possible extension of the existing Group-wide policies.

In 2012, we incorporated Munich Re’s commitment to the PSI into the preamble to our internal Group-wide risk management manual, which is the reference work for the relevant manuals used in the fields of business. At the same time, it constitutes a generally binding basis for all Group underwriting guidelines.


Further specialised units/panels for early ESG risk detection include:
CR portal
Risk management

Links
Geo Risk Research
Full
 
  • Reputational Risk Committee (Group annual report 2013, page 118)
  • Emerging Risks Think Tank (Group annual report 2013, page 127). In 2010, we largely completed the enhancement of our internal control system (ICS), a uniform worldwide system for managing operational risks integrated across all risk dimensions and areas of the Group that both meets Group management needs and satisfies local legal and regulatory requirements. (Group annual report 2013, pages 112 f.)
  • In 2007, Munich Re established the Corporate Climate Centre (CCC), forming the link between geoscientific research and operative underwriting.
  • The Group Development and Economic Research Department provides not only "classic" macroeconomic research but also analyses of social, political, environmental and technological megatrends, including reputational risks, potential disruptive developments and their influence on the Group’s future business.
  • In addition, in specialised centres of competence, e.g. for biosciences, experts develop solutions for new risks based on systematic analysis and prognoses. Whether it is natural catastrophes threatening our increasingly interwoven economies, demographic change, or new diseases – we actively contribute our know-how and implement risk management.
   
FS3 Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included in agreements or transaction.

Comprehensive risk analyses play a key part in our assessment of a client’s risk profile.

For Munich Re’s reinsurance business, our core activities include the risk assessments we undertake prior to entering into business and during annual renewals, the objective of which is to re-evaluate and revise our reinsurance contracts. They include any particular environmental, social and political factors the individual contracts may involve.

MEAG, Munich Re‘s asset manager, currently has assets totalling some €228bn in its portfolio (2013). Investments of this magnitude entail substantial responsibility, which we take very seriously and monitor accordingly. MEAG’s strategy is strictly geared to our asset-liability management guidelines and consistent risk management.
CR portal
SRI indices

Links
MEAG: Sustainability
Full
FS4 Process(es) for improving staff competence to implement the environmental and social policies and procedures as applied to business lines

Regular employee engagement and training takes place to enable our Group to live up to our Corporate Responsibility strategy and policies. Relevant information is presented in various formats, at events like our introduction courses for new staff members and courses for graduate recruits and trainees, and also at reinsurance and primary insurance management level Staff members of all functions have open access to the Munich Re Corporate Responsibility function that promotes our strategy and ESG policies across the Group.

Regular workshops giving opportunities for knowledge transfer with departments throughout Munich Re also play a part in the sharing of CR knowledge and promoting of CR issues.

Important guidelines are provided by our Code of Conduct, a copy of which all our employees receive together with their employment contracts and sign. Our asset management staff attend workshops and working groups that deal with the role of corporate responsibility in the investment process, and regular exchanges are organised with external specialists on socially responsible investment (SRI) and the Principles for Responsible Investment (PRI). The relevant teams address these issues in depth, dealing with in-house and external questions, carrying out research, attending courses and discussing ESG criteria with companies in which Munich Re invests.

Our environmental management system is systematically updated and assessed with regard to applicability and use in terms of compliance with the regulations laid down in the environmental manual and the appropriateness of those regulations.

Munich Re has environmental management system courses, communications and controls, and sets annual environmental programme targets. We also organise continuing professional and personal development courses. Internal audits are performed annually to verify the overall extent and approach of our environmental management.
  Full
FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities

One of Munich Re’s main concerns has always been to foster open interaction with our stakeholders, i.e. primarily with our insurance and reinsurance clients, the media, the general public, our employees and capital market players. This interaction entails addressing social and environmental risks that occur in connection with Munich Re’s business relations and general activities.
 
Our reinsurance operations focus on customised products. Each contract is designed to match the risks of the individual client and, as a result, we establish very close ties with our clients, also understanding the environmental and social challenges they might face.
We regularly share information with investors and analysts. At roadshows and in individual meetings, our senior management explain Munich Re’s strategy and business model in detail, also giving details of our Corporate Responsibility approach. Additionally, Corporate Responsibility is a standard component of the Munich Re scholarship programme, which trains clients in reinsurance.

Our business is inextricably linked with environmental issues. Through our clients and investees we are directly affected by environmental impacts, such as the growing number and intensity of weather-related natural catastrophes. We have long been contributing our specialist knowledge to numerous organisations and associations concerned with global warming. We have analysed climate change issues for 40 years; our work in this field supports efforts to tackle climate change impacts.

Communications with external partners are among the main factors involved in implementation of the Principles for Responsible Investment (PRI). We communicate our investment criteria, which include sustainability considerations, and address them in dialogue with our business partners. We require companies in which our MEAG Nachhaltigkeit ("sustainability") and MEAG FairReturn funds invest to supply information relevant to our sustainable investment criteria. We are publishing an increasing amount of information on PRI issues, e.g. through announcements in the financial press and our involvement in presentations and congresses on sustainability.
CR portal
Objectives
Corporate Citizenship
Full
FS6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector

Gross premiums written: €51,060m

By business line:
Reinsurance Life: €10,829m
Property-casualty insurance: €17,013m

Primary insurance
Life: €5,489m
Health insurance: €5,671m
Property-casualty insurance: €5,507m

Munich Health
Total: €6,551m

Gross premium written by region:

Germany: €14,0333m
Rest of Europe: €12,683m
North America: €17,132m
Asia and Australasia: €4,645m
Africa, Near and Middle East: €1,020m
Latin America: €1,547m
Group Annual Report 2013
“Notes to the consolidated financial statements”: p. 153 ff.
Download (PDF, 9.3 MB)
Full
FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose

Our General Investment Guidelines stipulate that the vast majority of our own investments in shares and bonds should satisfy sustainability criteria. These SRI criteria include human rights issues.

Our asset management arm, MEAG, offers different sustainable investment funds: MEAG Nachhaltigkeit and MEAG FairReturn.

With different regional focuses and investment strategies, MEAG embeds ESG in asset management and offers corresponding products and services.
CR portal
Asset Management
Objectives
Full
FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose

Our General Investment Guidelines stipulate that the vast majority of our own investments in shares and bonds should satisfy sustainability criteria.

MEAG has invested in German power grids and solar plants in Italy and Spain. By the end of the 2013 financial year, these investments had reached a total of €1.5bn. In the coming years, Munich Re intends to invest €4bn in infrastructure, renewable energy and new technologies, provided that the parameters are reliable and an appropriate return can be generated. Furthermore, we project a premium volume in the mid three-digit million range from insurance products for renewable energy.
CR portal
RENT project
Asset Management
Objectives
Full
FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures

Munich Re’s environmental management system (EMS) is certified to ISO 14001, and our Code of Conduct and environmental guidelines are geared to and support this system. Our externally certified environmental management system also monitors compliance with internal sustainability criteria and targets concerning our core business.
CR portal
Environmental management
Full
FS10 Percentage and number of companies held in the institution’s portfolio with which the reporting organisation has interacted on environmental or social issues

It is difficult to put a precise figure on the number of companies with which we interact on social or ecological issues. In the course of our business relationships, our asset management has dealings with the managements of several hundred companies, these contacts also being used to address environmental issues in the context of our comprehensive risk analyses. Munich Re’s commitment to the Principles for Responsible Investment reinforces the relevance of such issues to our relationships with our partners. Although engagement cannot be tracked at a global level, MEAG does engage with companies in its investment portfolio, particularly those included in its socially responsible investment funds.
CR portal
Objectives
Full
FS11 Percentage of assets subject to positive and negative environmental or social screening

As early as 2002, we decided that our investments in shares, corporate bonds and bank bonds should meet certain sustainability criteria.

More than 90% of AuM (excluding Munich Re’s stake inex ERGO) are covered by our corporate responsibility investment policy.
CR portal
Managing investments
Full
FS12 Voting polic(y/ies) applied to environmental or social issues for shares over which the reporting organisation holds the right to vote shares or advises on voting

MEAG analyses whether corresponding shareholder resolutions are in line with long-term ESG considerations and MEAG’s corporate objectives, its voting being determined on that basis.

Shareholdings in other joint-stock companies make up a relatively low percentage of Munich Re's investments at the present time. We exercise our right to vote primarily at the annual general meetings of German companies, since exercising such rights outside Germany entails substantial costs.

MEAG also holds in-depth talks with individual companies aimed at improving their SRI performance.
  Full
FS13 Access points in low-populated or economically disadvantaged areas by type

Microinsurance is playing an increasingly prominent role within Munich Re and globally because recent natural catastrophes have tended primarily to affect people whose financial means are extremely limited. Munich Re is working with MFIs, NGOs and other major players in this field.

Cooperating closely with the important players (e.g. MFIs and NGOs), Munich Re is active in this market in all business lines. We analyse selected markets and develop insurance solutions in the business-to-business and business-to-consumer areas.

Some examples:
CR portal
Reinsurance: microinsurance
Primary insurance: microinsurance
Munich Re Foundation
Full
  • Cooperation with CLIMBS on weather-index- related insurance (Cooperative Life Insurance & Mutual Benefit Services, Philippines).
  • Munich Climate Insurance Initiative (MCII initiated in 2005 by Munich Re) to respond to the growing realisation that insurance solutions can play a role in adaptation to climate change
  • ERGO offers microinsurance through a suite of products ranging from life to crop insurance.
  • The Munich Re Foundation organises the world's biggest microinsurance conference.
FS14 Initiatives to improve access to financial services for disadvantaged people

Munich Re offers a number of insurance products specifically geared to the needs of disadvantaged people, including microinsurance products available in emerging and developing countries like India and the Philippines.

Our Indian subsidiary offers a large selection of microinsurances from the non-life sector. These include health, personal accident and fire insurances as well as cover for loss of livestock (which especially in rural areas can be vital to survival for each household), damage to tractors, or crop failure as a result of extreme weather events. HDFC ERGO works with renowned microfinance institutions, businesses based in the country concerned, cooperatives and other rural associations.

In 2010, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), Munich Re and GIZ (German Agency for International Cooperation) worked with the Philippine cooperative insurance company Coop Life Insurance & Mutual Benefit Services (CLIMBS) on launching a microinsurance product to protect the loan portfolios of cooperatives against losses from extreme weather events in the Philippines. A core concern is to pass on the benefits to end customers in low-income households.

Microinsurance is also a major topic addressed by the Munich Re Foundation, which among other things organises the world's biggest microinsurance conference.

DKV offers special health insurance products for elderly policyholders struggling to pay the full insurance premium in their respective health insurance plans. With these new products, DKV is providing affordable health insurance schemes to the community. We also provide insurance coverage for HIV-infected people.
CR portal
Reinsurance: microinsurance
Primary insurance: microinsurance
Munich Re Foundation

Links
Microinsurance conference
   
Full
FS15 Policies for the fair design and sale of financial products and services

In accordance with our codes of conduct, we are fair and open in our business relations. Munich Re endeavours to give clients the best possible advice and the information they need to take sound decisions.

We avoid potential conflict with the interests of our clients and other business partners. Should such problems arise nonetheless, we make every effort to resolve them speedily. Munich Re’s Code of Conduct also contains data protection guidelines.

Munich Re’s product and service range – from development and marketing to the conclusion of business – is subject to strict quality controls. Transparency is important to us, and we are keen to ensure information on our products and services and the corresponding conditions is clearly expressed. Likewise, providing clear, coherent communications, beyond what is required by law, is one of ERGO’s value propositions. Customer queries can be dealt with through personal contact with one of ERGO’s many representatives.

After a major restructuring process within ERGO, a campaign for fair and easy perception of all ERGO products was conducted in 2011/2012 for more transparency and open communication. With its “clear language” initiative, the ERGO Insurance Group intends to put communication with its customers on a new footing. The aim is to make communication easier for customers to understand. ERGO will check texts for readability using special software and establish a minimum standard before the text is put to use.

Clarity also means concentrating on the information that customers need to know.

In the reinsurance context, we aim to be our clients’ preferred partner in risk, delivering solutions in the form of a broad range of products. Clients benefit from our strengths in financing issues and our expertise where risk is concerned.

We organise over 100 client seminars and workshops in Munich and at our other branches. Our connect.munichre client portal is one of our major client management assets. Compliance with the new standards is ensured using broad internal quality assurance procedures. New means of communication must meet the requirements in full, and existing ones are being successively reviewed and adapted.
Download
Code of Conduct (PDF, 354 KB)
Full
FS16 Initiatives to enhance financial literacy by type of beneficiary

Financial literacy and competence are key to Munich Re and our business. Our aim is to minimise the risk that clients will not understand our products and services or will be insufficiently informed about them, and so we organise initiatives and take part in activities designed to increase literacy and competence in this area.

To promote awareness of mathematical – and thus also financial – issues and the enjoyment of this subject, Munich Re’s reinsurance and primary insurance (ERGO) business segments have sponsored the internet portals of the German (since 2001) and European (since 2009) Mathematical Society.Society In keeping with our efforts to inform our clients and the public about socially innovative insurance projects in the countries and regions concerned, the Munich Re Foundation holds its annual International Microinsurance Conferencee in different emerging and developing countries. This offers experts from the financial, public, private and development cooperation spheres a broad platform for sharing experiences and ideas on challenges in this sector. In addition, Munich Re offers a scholarship programme for business clients in order to prepare them for challenges of the global insurance industry.
CR portal
Corporate Citizenship
Full

*GC: Global Compact


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