Sustainability in asset management

In recent years, the importance of sustainable investment has been increasing for Munich Re as a long-term, global investor. For us, the issue has threefold relevance:

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  Munich Re as an object of investment for sustainability-oriented investors
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  Munich Re as a provider of sustainable investments
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  Munich Re as an investor in sustainable shares, corporate and government bonds

Support of the UN Principles for Responsible Investment

Munich Re became the first German company to sign the UN Principles for Responsible Investment (PRI). These are intended to provide institutional investors with guidelines for taking social and environmental criteria into account in their investments.

They include observing the defined criteria when making investment decisions, promoting sustainable investment approaches in the financial sector and regularly reporting on progress. Details of the six Principles can be found in the "PRI Launch Document" (see "Publications" on the right).

Munich Re's involvement in the development of the PRI was based on the extensive experience it has acquired in integrating sustainability criteria into its asset management. At the invitation of the United Nations, representatives of Munich Re actively participated in the formulation of the Principles, both in a group of experts and in the so-called investor group, a panel of 20 institutional investors.

Munich Re sees the UN PRI as an important step towards greater consideration of sustainability criteria in the field of asset management. We firmly believe that the integration of social and ecological criteria in the investment process has a positive influence on investment risk and returns and can, at the same time, have a beneficial effect on risks on the liabilities side.

It is precisely the liabilities side of the balance sheet, the side which reflects the financial claims burdens, which is particularly significant in this respect. If institutional investors integrate ecological criteria in their investment decisions, for example, the pressure on companies to deal actively with environmental protection issues increases. Functioning management systems and other elements of active environmental management reduce the risk of environmental catastrophes and related claims. Munich Re will provide regular updates on implementation of the Principles for Responsible Investment in its sustainability reporting.