Climate Ambition & Reporting

Our business conduct is driven by appropriate risk management and a holistic approach to achieving economic success and added value for the Group. We do this in our (re)insurance business in particular by having strong customer focus, by offering responsible solutions and by integrating sustainability aspects into our (re)insurance products and services.

Through our Climate Ambition 2030, we are continuing this pursuit, focusing our decarbonisation targets on the following three key areas:

• With our decarbonisation target we are pursuing a planned further reduction in portfolio emissions for insured thermal coal mining (–35% absolute emissions) and from thermal coal power (–45% absolute emissions).
  
  The scope of this coal-related target (primary insurance as well as direct and facultative (re)insurance) remains unchanged from the 2025 climate ambition.
  
  In the long term, we remain committed to phasing out the (re)insurance of thermal coal activities by 2040. This applies to primary- and reinsurance business (including treaty business) across the Munich Re Group.

• We are also continuing to pursue a target for insured oil and gas production. Due to the substantial overachievement of the Climate Ambition 2025 (–96% emissions by the end of FY 2024), we are adjusting this target to commit to no expansion of the remaining portfolio.
• We are introducing a new decarbonisation target based on Insurance-associated Emissions (IAE) in accordance with the Partnership for Carbon Accounting Financials (PCAF) methodology. It applies regardless of our clients’ industry classifications.
  
  We are committing to reducing the greenhouse gas emissions intensity related to clients with reported emissions in our Facultative & Corporate Global Portfolio (–20% emissions intensity). 
  
  Our Facultative & Corporate Global divisional unit is part of Munich Re’s property-casualty reinsurance segment; accordingly, we are focusing this target on a segment that covers global large-risk direct and facultative (re)insurance business.

As a global investor, Munich Re is aware of its responsibility to conduct its activities sustainably and integrates sustainability criteria into its investment policy. As part of our new Climate Ambition 2030, we have also set ourselves climate targets for the next five years, until end of financial year 2030:

• The decarbonisation target for listed enterprises comprises equities and corporate bonds (excluding green bonds). Based on the reductions achieved to date, this results in a remaining reduction of –12% in emissions intensity.
• For the asset classes “direct investments in infrastructure” and “direct investments in private equity/debt”, we have set ourselves the target of achieving an overarching reduction in emission intensity of –20%.
• For real estate equity, we have set ourselves the target of reducing emissions intensity by –20%.
• With our target to phase out thermal coal (according to defined criteria), we are committed to divest all thermal coal investments held in listed equities and corporate bonds (excluding green bonds) and to cease to conduct new direct alternative investments in thermal coal by the end of 2030.
• The oil and gas decarbonisation target refers to equities and bonds (excluding green bonds). Based on the reductions achieved to date, we have set ourselves the target of a further –12% reduction in emissions.
• We have set ourselves the target of increasing our climate-tackling investments by €1.5bn by the end of 2030 compared to 2025. This target encompasses the asset classes of certified forestry, certified real estate and energy-related levers.
• Our engagement activities seek to establish dialogue with the companies represented in our investment portfolio with regard to their climate impact and strategies. By the end of 2030, our target is to have reached 30 active or completed engagements, calculated cumulatively since 2020. The engagement may relate to both liquid and illiquid investments.

Munich Re has already set out the first phase of its contribution to climate change mitigation. This phase includes the core elements of the Climate Ambition 2025, which are part of the overarching Munich Re Group Ambition 2025. The decarbonisation targets defined here are based on scientifically based scenarios.

Our previous decarbonisation targets (base year 2019) set under our Climate Ambition 2025 and their achievement in the 2024 financial year are shown in the chart below. We will publish details on final target achievement, based on our 2025 business figures, with the 2025 Group Annual Report (18. March 2026).