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Munich Re is leaving the Net Zero Insurance Alliance

Munich Re, one of Europe's largest insurance companies and the world's largest reinsurer, stated today that it would withdraw from the Net-Zero Insurance Alliance (NZIA) due to antitrust concerns.

The NZIA was founded in 2021, with Munich Re as a founding member, with the goal of assisting insurance companies in hastening the worldwide transition to net zero greenhouse gas (GHG) emissions through their underwriting and risk management practises. Signatories commit to transitioning their insurance and reinsurance underwriting portfolios to net-zero GHG emissions by 2050, including underwriting criteria and guidelines, client engagement, the development of insurance solutions for low-emission and zero-emission technologies, and nature-based solutions, among other things.

The NZIA is also a member of the Glasgow Financial Alliance for Net Zero (GFANZ), a multi-trillion dollar UN-backed climate-focused coalition of financial institutions that includes the Net Zero Asset Managers Initiative (NZAM), the Net Zero Asset Owner Alliance (NZAOA), the Net Zero Banking Alliance (NZBA), the Net Zero Financial Service Providers Alliance (NZFSPA), the Net Zero Investment Consultants Initiative (NZICI), and the Paris Aligned Asset Owners Alliance (PAAO).

Following the departure of investment giant Vanguard from the Net Zero Asset Managers effort in December 2022, this is the second high-profile exit from a GFANZ alliance.

Joachim Wenning, CEO of Munich Re, said in a statement confirming the NZIA exit:

"In our opinion, the opportunities for insurers worldwide to pursue decarbonisation goals collectively 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."

Despite leaving the alliance, Munich Re reiterated its climate goals, which include reducing GHG emissions from its investment portfolio by 29% by the end of 2025 and reaching net zero by 2050, reducing its climate-related oil and gas industry exposure so that there are no associated net GHG emissions by 2050, and achieving net-zero GHG emissions in its operations by 2030. As part of a series of new guidelines supporting the company's decarbonization goals, the business declared in October that it would no longer provide insurance coverage or investment for new oil and gas projects.

Wenning went on to say:

"Our dedication to climate change is unwavering. We adhere to scientific advice. We are currently decarbonizing at a rate that is faster than what is required to achieve net zero by 2050."

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