Corporate Responsibility In Business At Munich Re
Corporate responsibility in business at Munich ReFebruary 2016Corporate responsibility in business at Munich Re, February 20161
OverviewMunich Re's international cooperation –A strong commitment towards corporate responsibilityExamplesUNEP-FIMunich Re has signed the UNEPFI’s climate declaration and is an active memberof the UNEPFI Climate Change Working Group.since 1999Principles for Responsible Investment (PRI)Munich Re actively developed the UN Principles for Responsible Investment (PRI),which it signed in April 2006 – the first German company to do so.since 2006UN Global Compactsince 2007Munich Re has been a member of the UN Global Compact since August 2007.The ten principles of the UN Global Compact provide guidance for action in ourbusiness and set the basis for our corporate responsibility activities.Principles for Sustainable Insurance (PSI)since 2012Munich Re played an active part in developing the Principles for SustainableInsurance (PSI) since 2007 and was a founding signatory in June 2012. The PSIaim at anchoring ESG criteria in the core business along the value chain.Corporate responsibility in business at Munich Re, February 20162
OverviewCorporate responsibility is an essential componentof our Group strategyCorporate responsibility in business at Munich Re, February 20163
OverviewThe Corporate Responsibility department is acentral function at Munich ReStructureCEOGroup CommunicationsCorporateStrategyGroup AuditEconomicResearchGroup DevelopmentCorporateResponsibilityGroup ComplianceCorporateOfficeGroup TopExecutives &Compensation"Guideline competency"Business units implement strategy at local level with CR departments/coordinators,environmental managers, etc.CR is a central function located inGroup Development which directlyreports to the CEOCR triggers, monitors, controls, enables andmanages Group-wide CR-related tasksGroup Corporate Responsibility Committee (GCRC) as panel to monitorCR strategy and as Group Task Force for sensitive business issuesCorporate responsibility in business at Munich Re, February 20164
OverviewMunich Re Group-wide corporate responsibility programmeFields of action of our corporate responsibilityCorporate responsibility in business at Munich Re, February 20165
Principles for Sustainable Insurance (PSI)Principles for Sustainable Insurance (PSI) – A voluntaryand aspirational global framework for the insurance industryPrinciples for Sustainable Insurance1. Embed ESG in decision-making along thevalue chain2. Work together with clients and businesspartners to raise awareness, reduce risk anddevelop solutions3. Engage with governments, regulators andother key stakeholders4. Demonstrate accountability and transparencyCorporate responsibility in business at Munich Re, February 20166
Principles for Sustainable Insurance (PSI)Initiative representing approximately 20% of world premiumvolume and USD14 trillion in AuM1PSI signatory companies (country of domicile)21.Achmea (Netherlands)19.HSBC Insurance (UK)37.Sanlam (South Africa)2.AEGON (Netherlands)20.Insurance Australia Group (Australia)38.Santam (South Africa)3.African Risk Capacity InsuranceCompany (Bermuda)21.Interamerican Hellenic InsuranceGroup (Greece)39.SCOR (France)40.Seguradora Lider (Brazil)4.Allianz (Germany)22.Itau Seguros (Brazil)41.5.AmGeneral Insurance (Malaysia)23.La Banque Postale (France)Sompo Japan Nipponkoa Insurance(Japan)6.ASR Nederland (Netherlands)24.Liberty Seguros (Brazil)42.Storebrand (Norway)7.Atlanticlux (Luxembourg)25.MAPFRE (Spain)43.SulAmerica (Brazil)8.Aviva (UK)26.Mitsui Sumitomo Insurance (Japan)44.Suramericana (Colombia)9.AXA (France)27.Mongeral AEGON (Brazil)45.Swiss Re (Switzerland)10. Bradesco Seguros (Brazil)28.Munich Re (Germany)46.TAL (Australia)11. Brasilcap (Brazil)29.National Reinsurance Corporation ofthe Philippines (Philippines)47.TD Insurance (Canada)48.Terra Brasis Resseguros (Brazil)13. Continental Reinsurance (Nigeria)30.NN Group (Netherlands)49.The Co-operators Group (Canada)14. Custodian & Allied (Nigeria)31.Peak Re (Hong Kong)50.15. Delta Lloyd (Netherlands)32.Porto Seguro (Brazil)Tokio Marine & Nichido FireInsurance (Japan)16. FATUM Schadeverzekering(Suriname)33.QBE Insurance Group (Australia)51.Zwitserleven (Netherlands)34.Risk Management Solutions (US)17. Generali Group (Italy)35.RSA Insurance Group (UK)18. Grupo Segurador Banco do Brasil eMAPFRE (Brazil)36.Samsung Fire and Marine Insurance(Republic of Korea)12. Caixa Seguradora (Brazil)1Assets under management, as of July 2015. 2 Source: http://www.unepfi.org/psi/Corporate responsibility in business at Munich Re, February 20167
Principles for Sustainable Insurance (PSI)Broad range of supporting institutionsPSI supporting institutions (country of domicile)11. Association CAREDAS (Senegal)16. Insurance Association of the Caribbean(Barbados)29. Mexican Association of InsuranceInstitutions (AMIS) (Mexico)3. Brazilian Insurance Confederation (Brazil)17. Insurance Commission of the Philippines(Philippines)30. Multilateral Investment GuaranteeAgency (US)4. California Department of Insurance (US)18. Insurance Council of Australia (Australia)5. Ceres (US)19. Insurance Council of New Zealand (NewZealand)31. National Committee on InternationalCooperation and SustainableDevelopment (Netherlands)20. Insurance Institute for Asia & the Pacific(Philippines)32. Temple University Fox School ofBusiness (US)21. Insurance Institute of India (India)33. The Nature Conservancy (US)22. Interamerican Federation of InsuranceCompanies (FIDES) (Peru)34. Philippine Insurers & ReinsurersAssociation (Philippines)23. International Actuarial Association(Canada)35. Philippine Life Insurance Association(Philippines)24. International Cooperative & MutualInsurance Federation (UK)36. South African Insurance Association(South Africa)25. International Finance Corporation (US)37. University of Cape Town, Centre ofCriminology (South Africa)2. Association of Insurers and Reinsurers ofDeveloping Countries (Philippines)6. Climate Bonds Initiative (UK)7. ClimateWise (UK)8. Dutch Association of Insurers(Netherlands)9. Earth Security Group (UK)10.Environment & Security Initiative(Switzerland)11.Federation of Colombian Insurers(Fasecolda) (Colombia)12.Finance Norway (Norway)13.Financial Services Council of NewZealand (New Zealand)14.Forum per la Finanza Sostenibile (Italy)15.Global Organizational Learning &Development Network for Sustainability(Belgium)1 Source:http://www.unepfi.org/psi/26. International Institute for SustainableDevelopment (Canada)27. International Insurance Society (US)28. Italian Federation of Banks, Insurers andFinance (FeBAF) (Italy)38. University of Technology, Sydney (UTS)Business School (Australia)39. University of Westminster (UK)40. Washington State Office of the InsuranceCommissioner (US)Corporate responsibility in business at Munich Re, February 20168
Principles for Sustainable Insurance (PSI)ESG criteria, surety bond underwriting for infrastructureprojectsJoint initiative Collaboration by insurers writing suretybonds, led by Munich Re and theInternational Finance Corporation of theWorld Bank Group Global survey supported by theInternational Credit Insurance & SuretyAssociation (ICISA) and the PanamericanSurety Association (PASA) Survey report and ESG guiding principlesfor surety bonds (2016) Foundation to develop ESG guidingprinciples for other lines of insurancebusinessCorporate responsibility in business at Munich Re, February 20169
Corporate responsibility in businessOur responsible approach creates sustainable value –For our clients, staff, shareholders and societyCorporate responsibility in business at Munich Re, February 201610
Corporate responsibility in businessDefinition of environmental, social and governance (ESG)aspects at Munich ReEnvironmentSocialGovernance Pollution Natural resources andbiodiversity Political context and publicawareness Labour and workingconditions Health, safety and security forthe community Displacement of people Cultural heritage Responsible and correctplanning and evaluation Compliance Consultation andtransparencyCorporate responsibility in business at Munich Re, February 201611
Corporate responsibility in businessESG frameworkSensitive issues, Munich Re position and measuresBanned weaponsESG toolPolicy on cluster munition and land minesAssessment of different industries(e.g. engineering business)FrackingOil sandsPosition paper including specific questions on ESGaspectsPosition paper including specific questions on ESGaspectsArctic drillingInvestments in farmlandGuideline, risks to be referred to Arctic Drilling PanelMandatory ESG check for investmentsMiningSensitive issues under observationPosition paper including specific questions on ESGaspectsTax evasion, pulp and paper, palm oilESG country ratingESG information included in Munich Re Country Risk AssessmentNo investments in government bonds or bonds of government-sponsored organisations of countries which do not meetour criteriaCorporate responsibility in business at Munich Re, February 201612
Corporate responsibility in businessESG country rating used in investment and underwritingprocessesBased on Sustainalytics' “Country Risk Monitor“ with sustainability ratings for 165 countries, covering 31indicators. This tool is used by MEAG for sustainability rating of sovereign bonds and offered as anadditional resource to underwriters in Reinsurance and Munich Health.Corporate responsibility in business at Munich Re, February 201613
Corporate responsibility in businessESG criteria for engineering projects –Tool implemented as best practiceRelevant aspects explained in detail – where necessary with external linksCorporate responsibility in business at Munich Re, February 201614
Corporate responsibility in businessReputational risk committees for escalation of controversialsingle underwriting casesReputational risk committee (RRC)MissionWorking mode Consultation of business segments Reporting of critical issues prior to closing of adeal Analysis and assessment of individual cases RRC responds within 48 hours, giving clearguidance Escalation to Board of Management by RRCcoordinator in case of non-complianceExamples of requests Investment in / (re)insurance of specific entities / Groups (Re)insurance of potentially polluting projects (Re)insurance of projects in specific countries Insurance of clinical trial participants Critical productsReputational risks are monitored and steered within RRCsCorporate responsibility in business at Munich Re, February 201615
Corporate responsibility in businessCorporate responsibility in business –Product examples and solutionsProducts and services according to business field specialtyREINSURANCEMUNICH HEALTHERGOClimate change Nathan Risk Suite Agro Systems New coverage concepts inthe area of renewable energyPublic-private partnership Weather-index-basedinsurance Solutions to globalchallenges(e.g. The Global Fund)Access to insurance Managed care & prevention Pilot product example: specificsolutions for special groupssuch as Down (DKV IntegralSin Barreras)Inclusive business model Fundación IntegraliaLife insurance Unit-linked life insurance withinvestment in SRI productsMotor insurance 10% premium rebate forenvironmentally friendly carsMicroinsurance Range of insurance products (e.g.property, personal accident, crop) Mobile-phone-based insurancesolutionsMEAG Sustainability anchored in General Investment GuidelinesInvestments in infrastructure, renewable energy and new technology of up to 8bn (equity and debt)Provision of sustainability funds for third partiesESG country ratingCorporate responsibility in business at Munich Re, February 201616
Environmental managementGroup policy specifies core principles for environmentalprotectionAvoiding and reducing emissionsWe consistently avoid and reduce emissions wherever possible(from business travel, energy, water, paper and waste). Weestablish the highest technical standards wherever economicallyreasonable. We consider environmental principles while choosingmaterials, suppliers and service providers.Raising staff awarenessWe consistently heighten environmental awareness andresponsibility of all staff members and motivate them to activelyprotect the environment.Improving performanceWe monitor and develop our environmental measures with the aimof continuously improving the environmental performance of ourbusiness operations.Communication with stakeholdersWe communicate openly and inform our stakeholdersabout our environmental activities and environmental performanceon a regular basis. We raise awareness and share informationon environmental issues where appropriate. Thus we promotea culture of environmental protection.Source: Annual Report Munich Re 2014, page 115As well as according to ISO talpolicyDetailedpolicies as applicableEntitylevelEach entity is obliged to implementthe Group-wide policy in linewith its own situation and conditionsGroup-wide monitoringand controllingCorporate responsibility in business at Munich Re, February 201617
Environmental managementCarbon neutrality based on environmental management andCO2 emission reductionOur steps to carbon neutralityData gatheringand measuringCO2 emissionsA Group-wide environmentalmanagement system is inplace and approx. 80% ofemployees are coveredReduce CO2emissions by savingenergy, water andpaper, avoiding wasteand business travelTarget Munich Re 2020:- 35% CO2 emissions peremployee 2009 to 2020Substituteconventional electricityby green electricityCompensateremaining CO2emissions throughcarbon creditsTarget Munich Re 2020:100% electricity is fromrenewable sourcesSince 2015: Munich ReGroup is carbon neutralCorporate responsibility in business at Munich Re, February 201618
Corporate citizenshipCorporate citizenship: Munich Re makes a visible andmeasurable contribution to societyMunich Re's mission statement: "Munich Re sees itsresponsibility as a member of society (Corporate Citizen) inissues closely related to its core business and, at its locations,in the areas of culture and social affairs." Munich Re supports projects whose long-term and sustainableaim is to resolve concrete challenges faced by society.CC mission& guidelinesPromotional criteria &areas of focusInstrumentsDonations, CC sponsoring, CC memberships,foundations, corporate volunteering, privatepublic partnerships In selecting issues, Munich Re considers business-relevantissues (link to core business) and corporate locations andconcentrates on only a few, relevant areas of promotional focus. Munich Re strives for partner-like co-operations with charitableinstitutions. Munich Re is increasing its support for large-scale projects whichshow a measurable effect in meeting societal challenges andwhich are regularly evaluated with regard to their effectiveness. Munich Re is interested in involving its own staff members inCorporate Volunteering measures relating to charitable projects.Monitoring (KPIs)DJSI rating, measurability, for example according to theLondon Benchmark GroupCorporate responsibility in business at Munich Re, February 201619
Corporate citizenshipCorporate citizenship of Munich Re –Generating a positive social impactFocus: Natural catastrophes, science and education, environment, demographic change, health, culturaland social community projectsMunich Re sees its responsibility as a memberof society (Corporate Citizen) in issues closelyrelated to its core business and, at its locations,in the areas of arts & culture and social affairs.Our Foundations:Our goal is to take on global challenges anduse our knowledge, experience and creativity tocreate innovative and sustainable solutions.Among others we cooperate with: Franco-German initiative POC21(proof of concept) Fellowship programme “EightBillion Lives“ by Munich Re andImpact Hub Munich Pilotproject „digital flea market“with Munich based start-upSWOP TeamCorporate responsibility in business at Munich Re, February 201620
Corporate citizenshipOverview of corporate citizenship expenses 2014Munich Re (Group) CC-Spending in 2014: 6,480,170Science/EducationSocialHealthCulture & ArtsNatural catastrophesEnvironmentDemographic change(30%)(26%)(13%)(10%)(16%)(3%)(1%)Additional spendings ( 2.8m) for:Donations in kindPolitical donationsCorporate volunteering hoursFoundationsProject examples:Disaster prevention – Landslide mitigation in Aizawl,India Partnership with GeoHazards International Disaster prevention project in northern IndiaSafer buildings in the USA – Research on resiliencestandards Partnership with the Institute for Business andHome Safety (IBHS) Studies on hurricanes, wind tunnel tests and appsto inform consumersCorporate responsibility in business at Munich Re, February 201621
For information, please contactCONTACTAstrid ZwickIngrid GrunwaldHead of Corporate ResponsibilityManager Investor RelationsTel.: 49 (89) 3891-2711E-mail: azwick@munichre.comTel.: 49 (89) 3891-3517E-mail: igrunwald@munichre.comMünchener Rückversicherungs-Gesellschaft Königinstraße 107 80802 München, Germany Internet: www.munichre.comE-mail: responsibility@munichre.com : IR@munichre.com Internet: www.munichre.com/en/irCorporate responsibility in business at Munich Re, February 201622
DisclaimerThis presentation contains forward-looking statements that are based on current assumptions and forecastsof the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead tomaterial differences between the forward-looking statements given here and the actual development, inparticular the results, financial situation and performance of our Company. The Company assumes noliability to update these forward-looking statements or make them conform with future events ordevelopments.Corporate responsibility in business at Munich Re, February 201623
HSBC Insurance (UK) 20. Insurance Australia Group (Australia) 21. Interamerican Hellenic Insurance . (Canada) 48. Terra Brasis Resseguros (Brazil) 49. The Co-operators Group (Canada) 50. Tokio Marine & Nichido Fire Insurance (Japan) . Provision of sustainability funds for third parties ESG country rating MUNICH HEALTH Access to insurance
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