Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Governance

Environmental Achievements

• Reduced carbon emissions by 25% per employee (2019 to 2021)
• 92% green electricity Group-wide in 2021
• MR Munich headquarters is carbon net-zero

Social Achievements

• Proportion of women in management positions worldwide at 38%
• Proportion of women in management positions at Munich Re in Germany increased to 27%
• Launched two new development programmes, “The Future Manager” and “Next Level Leadership”, at ERGO, as well as the Oxygen programme in the reinsurance group.
• ERGO conducted its third global employee survey, achieving a response rate of 77% and a Sustainable Engagement Index of 80

Governance Achievements

• Established Board-level “ESG Committee” and high-level “ESG Management Team”,
• Standing Committee of the Supervisory Board responsible for regularly addressing sustainability topics since 2021.
• Munich Re again achieved the highest category with the rating “excellent” and was ranked first in the DVFA analysis of DAX and MDAX indices.
• Revised our remuneration system to include quantitative ESG targets in multi-year remuneration packages for our Board of Management.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Substantially higher losses in 2021 than in either of the two previous years, increasingly caused by climate change effects.
• Data gaps in measuring decarbonisation targets for liabilities

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented monitoring system w.r.t. our reduction targets
• Preparation to implement monitoring system w.r.t. our reduction targets
• Corresponding implementation in internal underwriting policies
• Further shaping of our Ambition 2025
• Implementation into internal underwriting policies
• Reinforced guidelines regarding insurance of Arctic drilling and related infrastructure
• Use of RepRisk and MSCI data base
• Creation of a new Group-wide ESG awareness-raising measure “ESG Basics”
• Planned conception of enhanced ESG training for employees in the core (re)insurance business

Supply Chain Management

Supplier Audits: Approximately 80% of framework agreements in reinsurance include UN Global Compact criteria in 2021; aiming for 95% medium-term coverage.

Responsible Procurement

• UN Global Compact principles
• Human rights clauses in supplier agreements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heat, drought, storms, hail, wildfires, floods, storm surges, sea level rise)
• Wildfires followed by cyclones/storms
• Floods

Transition Risks

• Market and technology shifts
• Regulatory changes
• Litigation risks (direct and indirect climate change liability)
• Reputational risks

Opportunities

• Increased demand for climate-related risk analysis and risk transfer solutions
• Increased opportunities for profitable green investments

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 27001

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 3 (Good Health and Well-being)
• Goal 11 (Sustainable Cities and Communities)

Munich Re's initiatives contribute to these goals through investments in renewable energy, climate risk management, support for inclusive insurance solutions, and disaster relief efforts.

Sustainable Products & Innovation

• aiSure™ (performance guarantee for AI solutions)
• CatAI (damage assessment solution using aerial imagery and AI)
• Various green tech insurance solutions

Awards & Recognition

• German Company Pension Award (first place in “large companies” category)
• InnoWard 2021 Education Award (reinsurance performance management)
• Human Resources Excellence Awards 2020 (reinsurance employee development)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Sustainable Forestry
• Sustainable Agriculture
• Green Buildings

Environmental Achievements

• Overachieved target of investing green bond proceeds in sustainable projects within 36 months of issuance; commitments exceed net proceeds by approximately 12%
• Investments in renewable energy (wind park), sustainable forestry, and green buildings

Social Achievements

• Not disclosed

Governance Achievements

• Established Green Bond Committee to govern project selection and monitoring; aligned with ICMA Green Bond Principles 2018

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ICMA Green Bond Principles 2018, EU Taxonomy Regulation (partially applicable)

Certifications: PEFC (Otway Silva), BREEAM (One Fen Court, World Port Center); BREEAM certification pursued (Poincaré, Strawinskyhuis)

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 11 (Sustainable Cities and Communities)
• SDG 15 (Life on Land)

Projects contribute to these goals through renewable energy, green buildings, and sustainable land management.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, equity and inclusion
• Responsible governance
• Sustainable approach to business
• Societal responsibility

Environmental Achievements

• Reduced greenhouse gas emissions from coal-fired power plants and thermal coal mining by 41% compared to 2019.
• Reduced greenhouse gas emissions from oil and gas production business by 80% compared to 2019.
• Reduced own operational emissions by 34% per employee compared to 2019.
• Maintained a high level of reduction in financed emissions at -47%.
• Increased investments in renewable energy, exceeding the €3bn 2025 portfolio target by the end of 2023.

Social Achievements

• Introduced a new governance structure for DEI topics in 2023.
• Increased the proportion of women in management positions to 39.5%, making progress towards the 40% Ambition 2025 target.
• Rolled out a new Code of Conduct in 2023, taking a clear stand against racism and discrimination.
• More than 16,900 hours of corporate volunteering.
• Supported more than 1,000 charitable organizations.

Governance Achievements

• Updated and rolled out Munich Re Code of Conduct.
• Introduced a new Supplier Code of Conduct.
• Integrated ESG criteria into the remuneration system for the Board of Management since 2012.
• Received an excellent rating and ranked first in the DVFA Scorecard for Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Managing climate-related risks for both assets and the (re)insurance business.
• Addressing transition risks arising from political and economic measures to shift to a low-carbon economy.
• Managing reputational risks influenced by climate change risks.

Mitigation Strategies

• Implementing a comprehensive climate risk management strategy.
• Developing a five-step analysis for transition risks based on TCFD recommendations.
• Establishing Reputational Risk Committees to analyze and assess reputational issues and ESG risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (introduced in 2023), incorporating UNGC principles.
• Corporate Responsibility (CR) clause in procurement contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise
• Heatwaves
• Pandemics

Transition Risks

• Market and technology risks
• Policy and legal risks
• Litigation risks

Opportunities

• Increased demand for climate resilience
• Shift towards a low-carbon economy
• Development of climate insurance solutions and ESG-focused investments

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact, Principles for Sustainable Insurance (PSI), Principles for Responsible Investment (PRI), TCFD

Certifications: ISO 14001, EMAS

Third-party Assurance: Limited assurance by an external auditor for the Combined non-financial statement and Green Bond Allocation and Impact Report.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• aiSure (insurance product for AI systems)
• Green Tech Solutions (insurance for renewable energy projects)
• Parametric insurance for natural catastrophes

Awards & Recognition

• German Sustainability Award 2023 in the "Insurance" sector