Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — ESG Presentation (October 2019)
40 slides from Munchener Ruckversicherungs-gesellschaft's sustainability presentation, Oct 7, 2019
Slide 1: Corporate responsibility in business at Munich Re
INVESTOR CALL ON Corporate responsibility in business at Munich Re 7 October 2019 Renate Bleich – Head of Sustainability Ernst Rauch – Chief Climate and Geo Scientist Michael Lardschneider – Group Security Risk Officer Image: AdobeStock/LuckyStep
Slide 2: Corporate responsibility – Key achievements in 2018
Corporate responsibility – Key achievements in 2018 Systematically integrating sustainability criteria when creating value – Key achievements in 2018 Climate ESG in core Governance strategy business Enabling new technologies for a Sustainability criteria deeply New remuneration system for the low-ca
Slide 3: Corporate responsibility – Strategy: shared value
Corporate responsibility – Strategy Reconnecting Corporate Responsibility (CR) activities with the business creates shared value – for the company and society The concept of shared value … … how we live it at Munich Re Shared value creation Corporate Responsibility ? ? focuses on connecting in B
Slide 4: Sustainable Development Goals Implementation at Munich Re
Corporate responsibility – Strategy Sustainable Development Goals Implementation at Munich Re Through our risk expertise, our sustainable solutions and our actions as a responsible employer, we are contributing in particular to the achievement of the following seven UN Sustainable Development Goals
Slide 5: ESG framework for insurance and investment activities
Corporate responsibility in business We have implemented an ESG framework for insurance and investment activities ESG aspects, sensitive issues, Munich Re position and measures ENVIRONMENT Pollution Natural resources and biodiversity GHG emissons ESG Tool for Underwriting Assessment of differe
Slide 6: Reputational risk committees for controversial cases
Corporate responsibility in business Reputational risk committees (RRC) for escalation of controversial underwriting and investment cases MISSION Consultation of business segments Analysis and assessment of individual cases EXAMPLES OF REQUESTS Investment in / (re)insurance of specific entitie
Slide 7: Responsible investment strategy based on three pillars
Corporate responsibility in business Munich Re’s responsible investment strategy is based on three pillars Systematic The majority of our investments are invested sustainably (placed in assets included 1 integration of ESG criteria in sustainability indices or meeting other accepted sustainability
Slide 8: Munich Re investments: Key achievements
Corporate responsibility in business Munich Re investments: Key achievements Shares, corporate bonds Systematic analysis of ESG criteria in addition to financial performance 1 Sustainability ratio for all forms of investment was New investment process Government bonds >80% in 2018 Use of count
Slide 9: Activities relating to climate change
Climate change and climate strategy Munich Re's activities relating to climate change focus on the following fields of activity CLIMATE STRATEGY MUNICH RE (GROUP) RISK EVALUATION RISK-TRANSFER SOLUTIONS ASSET MANAGEMENT Recording and evaluation of the Realisation of business growth areas as a Suppor
Slide 10: Climate change today: physical impacts
Climate Strategy – Risk evaluation Climate change today: physical impacts Increasing temperatures –> increasing higher weather hazards (examples) Based on Paris Agreement commitments: approx. 1°C warming since 1900 50% probability of warming >2°C temperature increase probability + 5°C 5% + 3°C 50% +
Slide 11: Climate change today: physical impacts (wildfires)
Climate Strategy – Risk evaluation Climate change today: physical impacts Increase in burned areas from wildfires Wildfire extent: area burned in the western US since 1984 25 Estimated cumulative forest area burned (millions of acres) 20 Wildfires with Climate Change 15 10 Wildfires without 5 Climat
Slide 12: Climate change today: physical impacts (cyclones)
Climate Strategy – Risk evaluation Climate change today: physical impacts stronger cyclones and new regions (e.g. south of Brisbane) Extreme weather events: future areas affected by tropical cyclones in Australia Source: Munich Re Corporate responsibility in business at Munich Re, October 2019 12
Slide 13: Climate change today: insurance risk of change
Climate Strategy – Risk evaluation Climate change today: insurance risk of change upward loss trend from natural catastrophes Overall and insured nat cat losses worldwide since 1980 90% of insured nat cat losses from (US$ bn) weather-related events Geophysical events Meteorological events Hydrologic
Slide 14: Climate change future
Climate Strategy – Risk evaluation Climate change future impacts until the end of this century (3°-5°C temperature increase) Physical impacts Economic impacts 5° uninhabitable zones, agriculture, water intense stranded sea level rise (m) 0.5-1.7m industry, lost tourism 3° some assets 0.4-0.9m fossil
Slide 15: Climate change: risk and business development drivers (1)
Climate Strategy – Risk evaluation Climate change: risk and business development drivers (1) Nat Cat insurance gap Insurance gap closing (=insurance penetration increasing) in high-income countries Insurance gap unchanged in low-income countries Since 1980 the insurance gap (uninsured losses as a sh
Slide 16: Climate change: risk and business development drivers (2)
Climate Strategy – Risk-transfer solutions Climate change: risk and business development drivers (2) sovereign and public-private Nat Cat risk transfer schemes Norway Switzerland Norsk Naturskadepool (NNPP) Swiss Natural Perils Pool (ESS-Pool) Intercantonal Union of Reinsurance (IRV) United States I
Slide 17: Climate change: technology drivers
Climate Strategy – Risk-transfer solutions Climate change: technology drivers achieving a complete decarbonisation by 2050: 4 phases 1 Basis technologies deployment of renewables, energy efficiency Integrated 2 System integration digitalisation, new electric markets, industry, transportation, heat E
Slide 18: Technology drivers: Munich Re business opportunities
Climate Strategy – Risk-transfer solutions Technology drivers: Munich Re business opportunities innovative solutions by “Green Tech Solutions” – enabling new technologies Established Renewables Smart Energy & Disruptive Technologies LED Asset/ Electrical Bio Energy/ Solar Wind Energy Fuel Installati
Slide 19: Investments in renewable energies and low carbon infrastructure
Climate Strategy – Asset Management Munich Re focuses on investments in renewable energies and low carbon infrastructure Fundamental reorientation of energy supply investments and rapid escalation in low-carbon investments necessary to achieve 2° scenario Investments needs far surpass public fun
Slide 20: Digitalisation and cyber security activities
Digitalisation and cyber security Munich Re's activities relating to digitalisation and cyber security focus on the following fields of activity BUSINESS OPPORTUNITIES CYBER SECURITY STRATEGY EMPLOYEES & KNOW HOW • Digital cooperation models Defined mission: • Digital technology is transforming the
Slide 21: Security Risk Management Process
Security Risk Management Security Risk Management Process Identification and Management of Event Assessment of Management of Recovery observation emergencies and (trigger) security risks1 security incidents2 management of security threats crises2 1st LoD3 (Risk taker, takes direct result responsibil
Slide 22: Security Risk Management tasks and responsibilities
Security Risk Management Security Risk Management Tasks & Responsibilities of Integrated Risk Management Safeguard information (C, I, A)1 Methods and measures to Information Security incident management improve our security culture Knowledge exchange RM, IT Cyber Security business (Cyber Forum
Slide 23: Munich Re Cyber Security Threat Radar
Security Risk Management Munich Re Cyber Security Threat Radar (Status: 10/2019) 28 Mass Surveillance 27 Technology Potential impact Hacking Quantum Computing Supply chain Potential for low cost single losses 24 attack Potential of normal single losses Crypto mining/ 23 System jacking failure Data b
Slide 24: Munich Re's sustainability performance
Corporate responsibility in business – Reporting and communication Munich Re’s sustainability performance again amongst the top 10% insurers worldwide Sustainable Responsible Corporate Combined Investment Ratings Responsibility Report non-financial statement MSCI Corporate responsibility in business
Slide 25: Backup
Backup Corporate responsibility in business at Munich Re, March 2018 25
Slide 26: Governance – Remuneration system for the Board of Management
Backup: Governance Governance – Remuneration system1 for the Board of Management meets shareholder requirements Basic remuneration plus remuneration in 50% kind/fringe benefits Bonus scheme Corridor Assessment basis spanning 30% 1 calendar year 0 – 200% IFRS consolidated result Variable remuneration
Slide 27: Criteria for the evaluation of overall performance
Backup: Governance Criteria for the evaluation of overall performance (Examples for bonus / malus aspects) Individual Result of division/line of business, contribution to overall performance Individual performance (qualitative and/or quantitative) management ESG criteria (environmental, social
Slide 28: The Sustainability Department is a central function
Backup: Governance - Corporate responsibility The Sustainability Department is a central function at Munich Re – Structure overview CEO … … Economics, … … ... Sustainability & Public Affairs (ESP) Economics Sustainability Public Affairs "Guideline competency" Business units implement strategy at loc
Slide 29: Security Governance (Security Risk Committees)
Backup: Governance - Security Risk Management Security Governance (Security Risk Committees) RI ERGO Group Group Committee Committee Board Strategy CEO CFO CInvO RI CEO PI CEO Committee Board Board members members of business of business units units Munich Re Munich Re ERGO Group Cyber Security Risk
Slide 30: Energy Storage System Performance Warranty Cover
Backup: Climate Strategy – Risk-transfer solutions Business enabling examples Energy Storage System (ESS) Performance Warranty Cover Description Value proposition Long-term performance cover for Enterprise risk management (ERM) cover for revenues of Battery Cells & Packs global annual production
Slide 31: Photovoltaic Sales and Buyers Cover
Backup: Climate Strategy – Risk-transfer solutions Business enabling examples Photovoltaic (PV) Sales and Buyers Cover Description Value proposition Long-term performance cover for Planning stability due to dedicated capacity for Buyers and Investors in and manufacturer of photovoltaic modules P
Slide 32: Public Private Partnerships: NatCat Risk Management Solutions
Backup: Climate Strategy – Risk-transfer solutions Public Private Partnerships: NatCat Risk Management Solutions for Governments, supranational Organizations & NGOs Damages Losses Comprehensive Risk Management Framework Understand risk If uninsured: Recovery Public Assets Property, Risk prevention/
Slide 33: Risk Transfer within the Sovereign Risk Management Framework
Backup: Climate Strategy - Risk-transfer solutions Risk Transfer within the Sovereign Risk Management Framework: Different Possibilities Protection for Sovereign risk protection Social protection households/private sector government private sector low income Policyholder Governments Private househol
Slide 34: Carbon neutrality based on environmental management
Backup: Climate Strategy – Carbon neutrality strategy Carbon neutrality based on environmental management and CO2 emission reduction Our steps to carbon neutrality –35% Data gathering and measuring Reduction of CO2 emissions by Substitute conventional Compensate remaining CO2 CO2 emissions saving en
Slide 35: Measures to reduce our carbon footprint
Backup: Climate Strategy – Carbon neutrality strategy We implement various measures to reduce our carbon footprint Premises IT/Procurement Modernisation of premises, e.g. cooling technology Environmentally friendly products for office supplies systems at Munich site (savings of ~160 tonnes of ca
Slide 36: Our commitment to protection against climate risk
Backup: Climate Strategy - Involvement in climate initiatives Our commitment to protection against climate risk Munich Re supports the InsuResilience Global Partnership initiative with data, expertise and risk capital. Founded in 2015 by the G7 countries, this initiative initially aimed to enable
Slide 37: Diversity at Munich Re
Backup: Human Resources Diversity at Munich Re Our group-wide public Diversity Policy sets down the most important principles in regards to Diversity and forms the basis for overarching and comprehensive diversity management. “For Munich Re, diversity is a business need which promotes the acceptan
Slide 38: Employee Development & Digitalisation
Backup: Human Resources Employee Development & Digitalisation We developed a platform that analyses Munich Re’s needs in terms of new employee profiles and aims at upskilling the current workforce in all fields relevant to the digital transformation. Initivatives: Digital School1: introduced in Se
Slide 39: Contact
Contact Corporate Climate & Public Sector Integrated Responsibility Business Development Risk Management Renate Bleich Ernst Rauch Michael Lardschneider Head of Sustainability Chief Climate and Geo Scientist Group Security Risk Officer Investor Relations Ingrid Grunwald Tel.: +49 (89) 3891-3517 E-ma
Slide 40: Disclaimer
Disclaimer This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the a