Munich Re ends membership of Net-Zero Insurance Alliance

Global reinsurer Munich Re has discontinued its membership in the Net-Zero Insurance Alliance (NZIA).

The UN-convened NZIA is a group of 29 insurers and reinsurers, who together represent approximately 15 per cent of the world premium volume globally.

Members of the NZIA have committed to transition their portfolios to net-zero greenhouse gas (GHG) emissions by 2050.

Joachim Wenning, CEO of Munich Re, said: “In our view, the opportunities to pursue decarbonisation goals in a collective approach among insurers worldwide without exposing ourselves to material antitrust risks are so limited that it is more effective to pursue our climate ambition to reduce global warming individually.”

Munich Re’s own climate targets remain:

• GHG emissions related to the investment portfolio will be reduced by 29 per cent by the end of 2025, and then brought down to net zero by 2050
• Reducing its climate-related industry exposure in such a way that there will be no associated net GHG emissions by 2050. As of April 2023, it will not insure projects involving new oil and gas fields or new midstream oil infrastructure. At the same time, the company will reduce thermal-coal-related exposure in its direct and facultative insurance business by 35 per cent Group-wide by 2025, before eliminating this exposure altogether by 2040
• In its own operations, current GHG emissions are to be reduced by a further 12 per cent per employee by 2025. By 2030, the company expects to achieve net-zero GHG emissions in its operations.

“Our climate commitment is unwavering. We follow scientific recommendations. To date we are decarbonising even faster than what is required to reach net zero by 2050,” emphasised Wenning.