Anthropogenic climate change is already a reality today, this is an established fact. In global terms, 2018 was one of the four warmest years ever. The mean temperature of land and sea surfaces was almost 1°C above the level for the pre-industrial period. Nine of the ten warmest years have occurred since 2005.
The consequences of climate change directly affect the insurance industry. Extreme weather events result in substantial damage to buildings and infrastructure, as well as causing significant crop losses in agriculture. People are killed and injured, particularly in regions where risk prevention is still in its infancy.
Already today, decisive action is an absolute necessity to limit global warming to less than 2°C. Munich Re is also committed to achieving this goal set by the Conference of the Parties (COP) on Climate Change in Paris, and undertakes to make its own, independent contribution to combating climate change.
Our own climate strategy determines our action
Risk evaluation creates transparency
For us, recording and assessing the impact of climate change on the frequency and intensity of natural disasters is of key strategic importance. We can only develop and implement viable risk transfer solutions for our clients if we have a good understanding of the associated effects on our business.
As part of the risk assessment, we examine the recommendations of the international Task Force on Climate-related Financial Disclosures (TCFD). These go far beyond simply climate reporting. They also expedite the holistic integration of risks and opportunities from climate change and the low-emission economy into the corporate value chain.
Active climate protection by promoting climate-friendly technologies
We need a new approach worldwide to limit global warming, whether in terms of power generation based on renewable energies, in transport, energy storage, or industrial production. Munich Re seeks to aid the breakthrough of these climate-friendly and sustainable technologies. Insurance solutions protecting against specific risks, thereby enhancing the appeal of the technologies for investors and strengthening their financing viability, are one component in this context.
Asset management makes the most of climate protection potential
Expanding investments in renewable energy and infrastructure projects contributes to climate change adaptation and mitigation. The volume of capital invested in renewable energies such as solar parks and wind farms totalled €1.6bn at the end of 2018. Our long-term target is to increase this figure to €2.8bn.
Carbon neutrality in Munich Re (Group) business operation
We exploit the potential of our own business processes to ensure climate-friendly action. Business operations throughout our Group have been carbon-neutral since 2015.
There is more detailed information on our environmental management system and further activities in the section on Environment.
Our commitment to protection against climate risks
For many years, Munich Re has played an active role in a range of national and international climate protection organisations, such as the United Nations Environmental Programme and the Global Climate Forum. We wish to contribute our expertise as a valuable partner for political decision-makers, organisations and other enterprises.