Munich Re withdraws from UN climate alliance over 'antitrust' concerns

Munich Re withdraws from UN climate alliance over ‘antitrust’ concerns

3 April 2023

Munich Re has pulled out of Net-Zero Insurance Alliance, citing concern over “material antitrust risks” as the reason behind its decision to leave the United Nations-convened emissions reduction bloc.

“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,” CEO Joachim Wenning said.

Net-Zero Insurance Alliance comprises of the industry’s major insurers and reinsurers, representing 15% of world premium volume, who have committed to transition their underwriting portfolios to net-zero greenhouse gas emissions by 2050. Australia’s QBE and IAG are members of the alliance.

Munich Re says it remains committed to supporting global efforts to reduce emissions after leaving the alliance.

“Our climate commitment is unwavering. We follow scientific recommendations,” Mr Wenning said.

“To date we are decarbonising even faster than what is required to reach net zero by 2050.”

The reinsurer says in a first step its greenhouse gas emissions related to the investment portfolio will be reduced by 29% by the end of 2025, and thereafter successively brought down to net zero by 2050.

And as of this month it will not insure projects involving new oil and gas fields or new midstream oil infrastructure.