Tackling climate change together – doing something for the climate and for society
Our climate is changing. We are all feeling the consequences of extreme weather events; heatwaves, droughts, heavy rainfall and severe cyclones, and more frequently. Yet it is often the case that those who suffer the most from extreme weather are those who already live in difficult economic circumstances. With their Social Impact Project, Tackling climate change together (TCCT), Munich Re and ERGO are supporting initiatives that help to mitigate the consequences of weather-related natural catastrophes or show people how they can adapt to climate change.
We do not just provide expertise and experience, but also the financial means. TCCT is pursuing two paths: together with EIT Climate-KIC, the largest public-private climate initiative from the European Union, TCCT is helping new companies to develop climate protection solutions. We will soon be reporting on the latest call for applications to the Accelerator programme, and on the winning ideas. TCCT also supports projects that carry out so-called ecosystem-based adaptation initiatives. This involves maintaining, sustainably using, and regenerating ecosystems to limit the regional effects of climate change, and to ensure a basis of existence for the people affected in the area. Examples include reforestation or restoring coral reefs to protect the coast.
The consequences of climate change are already affecting our customers and our business today. This makes it all the more important for us to make a sustainable contribution to climate protection in our social commitment. That is why we are focusing on the long-term effect of reforestation and the strengthening of entire ecosystems in key regions, and we support young entrepreneurs with climate-friendly business ideas.
Protecting communities and the economy in the Mekong Delta
Protecting tropical forests, securing natural resources
Insurance is our core business. It is how we make society more resilient. But we also want to use our expertise, experience and financial means to avoid losses, or at least to reduce their impact. Climate protection has been our focus for decades. With the two reforestation projects, we can reach people who are unable to protect themselves against the effects of climate change.
Reducing risk and risk transfer for more effective protection
These kinds of ecosystem-based adaptation initiatives are promising, and look to make a long-term, positive impact on the regions that are heavily affected by the effects of climate change. This also pertains to regions in which insurance already plays a role boosting communities’ resilience. The measures could reduce future losses, thereby allowing insurance premium to be reduced. Munich Re is examining possibilities like these. A group of scientists from the University of California, Santa Cruz, The Nature Conservancy and Munich Re recently released a study of a solution that combines risk transfer with risk reduction. The study examines to what extent restored coral reefs can reduce the risk of storm floods to property and housing along the coast. Whilst the study focuses on the advantages of restoring coral reefs, we are convinced that a combined solution − ecosystem-based adaptation initiatives and suitable insurance solutions - can also be applied to other regions.
We take a holistic approach to risk and develop solutions to avoid, reduce or transfer risk. Measures to reduce risk are especially critical to people who cannot yet afford insurance, which is why the Tackling Climate Change Together project - a joint effort from Munich Re and ERGO - is focusing precisely on this group.