Putting knowledge to use, devising solutions
In the financial and insurance sector, Munich Re is a pioneer in analysing the consequences of climate change. We are continually expanding the competence we have gained over decades in order to promote climate-protective solutions, for example, new cover concepts for investors in innovative, climate-friendly technologies. Moreover, we plan to place all our business activities within Munich Re (Group) throughout the world on a climate-neutral basis.
Munich Re has been studying the risks and opportunities posed by climate change since founding its Geo Risks Research Department back in 1974. Our knowledge in this field continued to grow and was concentrated in one place in 2008 when the » Corporate Climate Centre (CCC) was founded. In this network, staff members from all parts of the Group investigate the consequences of climate change and devise pioneering concepts and solutions for climate protection.
Adapting to the effects of climate change
Such concentrated competence is a huge help in opening up new fields of business and developing innovative cover concepts for adapting to the effects of climate change. In Munich Re's core business, these include crop failure covers and policies providing protection against flood damage. We also offer a truly unique service for better identifying complex natural hazards: the NATHAN Risk Suite. This made-to-measure product draws on extensive data resources to offer, among other options, precise identification of relatively highly exposed sites throughout the world, also taking into account the changes resulting from climate change.
New measures and regenerative solutions
To smooth our transition to a low-CO2 society, Munich Re is developing insurance products aimed specifically at promoting climate protection. For example, we accept special risks entailed in the use of renewable energies, for instance innovative cover concepts for solar cells or for manufacturers of wind farms. In 2009, moreover, Munich Re joined with the DESERTEC Foundation and other international corporations to found the industrial initiative Dii GmbH. The basic idea of this international interest group, which meanwhile includes more than 50 partners, is to build systems for converting solar energy captured in sunshine-rich desert regions and thus to secure over the long term a climate-friendly, sustainable power supply for Europe, the Middle East and North Africa. To mitigate the effects of climate change, Munich Re is also investing in renewable energies and new technologies within the framework of its RENT programme.
“Climate Change will have enormous economic, social and security implications. Through a part of its core business, the insurance industry is directly affected by climate change and therefore assumes a leading role in analysing its effects and developing solutions for climate protection.”
Prof. Peter Höppe, Head of Munich Re’s Geo Risks Research/Corporate Climate Centre
Networking within the scientific community
The experts at the CCC maintain a close dialogue with scientists, associations and research organisations all over the world, and take part in projects and studies. For example, we are working with the London School of Economics and Political Science (LSE) on ways of making the economic effects of climate change quantifiable and identifying opportunities and risks for the insurance industry.
Striving to benefit humanity
At the same time, Munich Re also plays a role in various national and international climate-protection bodies. Experts from Munich Re tackle climate-protection issues in the United Nations Environment Programme (UNEP). In both the Umweltpakt Bayern (Bavarian Environmental Pact) and the Climate Group – a group of companies that have committed themselves to climate protection – we share our expertise with other companies, political decision-makers and the general public. In 2005, Munich Re also initiated the Munich Climate Insurance Initiative (MCII). Comprising insurance, climatic and economic experts and NGOs, the MCII endeavours to find risk-transfer solutions for developing and emerging countries within the framework of the World Climate Conference (UNFCCC). The essential aim is to redress the imbalance between the main emitters of greenhouse gases and the developing countries, since many of the latter are particularly hard hit by the the effects of climate change.
Group-wide climate neutrality by 2015
Munich Re advocates effective and binding rules on CO2 emissions not only internationally, but also internally: business operations throughout our Group are to be made carbon-neutral by 2015 based on our internal environmental management system, which enables us to continually improve our ecological footprint and CO2 emissions performance.
