Munich Re Leaves Net Zero Alliances, But Confirms Climate Goals

Munich Re, one of Europe’s largest insurance groups and the world’s largest reinsurer, is withdrawing from climate coalitions, including the Net Zero Asset Owner Alliance (NZAOA), the Net Zero Asset Manager Initiative (NZAM), which suspended operations following a series of defections in January, Climate Action 100+ (CA100+) and the Institutional Investors Group on Climate Change (IIGCC).

The decision, which was motivated by legal and regulatory pressure, follows Munich Re’s exit from the Net-Zero Insurance Alliance (NZIA) in 2023 , citing antitrust concerns.

CEO Joachim Wenning explained that the opportunities to pursue decarbonisation targets in a collective approach among global insurers are limited , making a targeted, autonomous commitment more effective.

Munich Re climate commitment continues: decarbonisation targets

Despite withdrawing from Net Zero coalitions, Munich Re reaffirms its environmental commitment and declares that it will maintain its climate targets. In particular:

Investments: Reduction of greenhouse gas (GHG) emissions from the investment portfolio by 29% by 2025 , with the aim of achieving carbon neutrality by 2050.

Fossil Insurance: Reducing exposure to the oil and gas sector to zero emissions by 2050 , with an initial 5% reduction by 2025. From 2023 , the company has stopped insuring new oil projects and crude transportation infrastructure.

Coal : Decrease coal exposure by 35% by 2025, with a goal of eliminating it entirely by 2040.

Since 2018, the company has stopped insuring new coal plants , coal mines and, since 2019, oil sands mining projects.

Internal operations: Carbon neutrality since 2015 , with a 44% reduction in emissions per capita between 2009 and 2019. By 2025 , the company aims for a further 12% reduction in emissions per employee and complete climate neutrality by 2030.

The reaction of the coalitions and the regulatory context

Munich Re’s exit from Net Zero initiatives is part of a broader trend: several financial firms are leaving ESG coalitions due to increasing political and regulatory pressure, especially in the United States. Following BlackRock ’s exit, NZAM suspended its core activities to adapt to the new regulatory environment. The Net-Zero Banking Alliance (NZBA) also saw all major US and Canadian banks withdraw.

A spokesperson for the NZAOA confirmed that Munich Re had communicated its withdrawal, but reiterated that the company’s climate commitments remain in line with the Alliance’s protocols, thanking the company for its collaboration over the past five years.

Towards an autonomous climate strategy

Munich Re has made it clear that it will continue to contribute to climate protection independently, avoiding unregulated reporting obligations and taking a more targeted and strategic approach . By the end of the year, the company will present new climate targets , consolidating its sustainability strategy.

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(Featured image by Li-An Lim via Unsplash)

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