New Climate Strategy of Munich Re

2020/12/10

Group

As an environmentally conscientious business, Munich Re will play its part in meeting the targets of the Paris Climate Agreement. The Group has therefore set itself ambitious climate protection targets for its investments, its (re)insurance transactions and its own business operations. More specifically, net greenhouse gas emissions in its investment portfolio will first be reduced by 25–29% between now and 2025, before achieving net-zero emissions by 2050. Munich Re has already ceased to invest in companies that generate more than 30% of their earnings from coal or by extracting oil from oil sands. 

As for the exploration and production of oil and natural gas (direct and facultative business), Munich Re will be reducing its climate-related industry exposure in such a way that there will be no attributable net CO2 emissions by 2050. In an initial phase, Munich Re will seek to reduce greenhouse gas emissions by 5% between now and 2025. At the same time, Munich Re will reduce its coal-related exposure in its direct and facultative insurance business by 35% worldwide, before eliminating this exposure altogether by 2040. 

Munich Re has already stopped insuring new coal-fired power plants, new coal mines, and oil sands mines. In addition, in-house business operations have been climate-neutral since 2015; Munich Re has already cut its CO2 emissions per staff member by 44% since 2009. Current CO2 emissions are to be reduced by a further 12% per employee by 2025. Five years thereafter, in 2030, the Group expects to achieve net-zero CO2 emissions from its business operations. In practice, this means that any CO2 emitted by the Group from 2030 onwards would need to be offset by capturing CO2 in the atmosphere.