Munich Re logo
Not if, but how

Explore Munich Re Group

Get to know our Group companies, branches and subsidiaries worldwide.

Corporate responsibility in investment
© mauritius images / Masterfile
    alt txt

    properties.trackTitle

    properties.trackSubtitle

    Our business model as an insurer has a long-term focus. Sustainability criteria therefore play a key strategic role in investments. As a large asset owner and investor, Munich Re is aware of its responsibility and its impact on sustainability. We are obligated to invest our clients’ money sensibly and profitably in a manner that adheres to strict security and return requirements, which is why we integrate environmental, social and governance (ESG) criteria into our investment decisions.

    Our sustainable investment strategy is enforced and developed through an impactful governance structure and implemented based on four key activities:

    1.
    ESG integration
    Helps us to identify further risks and opportunities by going beyond standard financial analysis.
    2.
    ESG stewardship
    Means that we engage with selected companies we have invested in to promote higher sustainability standards.
    3.
    ESG exclusions
    Form part of our Responsible Investment Guideline, which guides and mandates the implementation of our sustainable investment strategy.
    4.
    ESG-focus investments
    These investments aim to contribute positively to our ESG strategy.

    Strategy development and implementation

    Munich Re’s sustainable investment strategy is anchored in two fundamental frameworks: Munich Re was one of the first signatories of The Principles for Responsible Investments (PRI), of which Munich Re was a founding member and is an active member of the Net-Zero Asset Owner Alliance (NZAOA). The climate commitment to net-zero by 2050 in accordance with the NZAOA has become an integral part of the Group Ambition 2025, which was made public in 2020. On this basis, we have established a binding Group-wide Responsible Investment Guideline (RIG), which covers ESG requirements that concern the Group’s investment management, including binding exclusion criteria for investments.

    To further strengthen Munich Re’s commitment to this cause, the Group’s two asset managers, MEAG and Munich Re Investment Partners, also became PRI signatories in 2021. 

    ESG criteria anchored in the investment process

    It is Munich Re’s conviction that integrating ESG criteria into investment decisions contributes to better, more holistic risk management of the assets we own. Munich Re is convinced that ESG integration leads to higher risk-adjusted returns over a market cycle. Furthermore, Munich Re combines various approaches to ESG integration across our investment value chain, from strategic asset allocation through to asset management. This helps identify risks and opportunities beyond standard financial analysis. An overview of the individual investment segments and their focus on sustainability you will find in our Sustainability Report.

    ESG-focus investments and opportunities

    In the spirit of creating shared value, Munich Re uses economically sound investment opportunities to create a potential positive impact. These include investments in renewable energy, forests with certified management, certified buildings, and green bonds. In the medium term, we envision an expansion of the ESG-focus portfolio, which is expected to increase the EU Taxonomy eligibility of our investments.
    Floating solar panels or solar cell platform on the lake
    © Tomwang112 / iStock / Getty Images Plus
    Floating solar panels on the lake
    €2.4bn
    invested in Renewables
    €2.6bn
    invested in certified real estate
    €1.5bn
    invested in certified forestry management

    Munich Re´s green bonds

    In 2020, as the first German insurer, Munich Re issued a green bond (volume of €1.25bn). As part of the bond issuance, we committed ourselves to investing the volume issued in sustainable projects in accordance with the Green Bond Framework. When selecting the projects, we were guided by the UN Sustainable Development Goals. We have specified a time horizon of 36 months in this regard and will publish information about the investments made in an allocation report on our homepage. We intend to invest the volume issued in projects that are diversified geographically and across the alternative asset classes.
     
    In 2021 (volume of €1.0bn) and in 2022 (volume of US$ 1.25bn), Munich Re issued further subordinated green bonds and intended further issues to further strengthen our commitment to creating positive impact.