MUNICH RE CORPORATE RESPONSIBILITY Contents Page Strategy and challenges 2 Statement by the CEO 4 Guiding concept and mission 5 Fields of action and objectives 6 Milestones 8 Stakeholder dialogue 12 Challenges 14 Management 20 Responsible corporate governance 21 Sustainable investments 29 Responsibility towards staff 36 Our environmental awareness 50 Solutions 58 Strategic approach 59 Reinsurance 60 Primary insurance 67 Munich Health 72 Asset management 75 Commitments 77 New corporate citizenship concept 78 Focal areas – Investing in the future 79 Foundations – Making a difference 85 Facts and figures 89 About the corporate responsibility portal 90 Key performance indicators 91 GRI and Global Compact Communication on Progress 99 SRI-Indices and awards 134 Partnerships, initiatives and foundations 136 MUNICH RE Corporate Responsibility Contact Privacy Statement Legal Notice Imprint CORPORATE RESPONSIBILITY MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES Corporate Responsibility in Figures STRATEGY AND CHALLENGES Munich Re is committed to its corporate responsibility. To ensure that we meet 28,000 this commitment, responsible action is a mainstay of our strategy, firmly ingrained in our organisation, and thus addresses the major challenges of our More than 28,000 entries are time. » more tracked within NatCatSERVICE, our collection of natural catastrophe database. » more STATEMENT BY THE CEO CURRENT NEWS Quick Links » Statement by the CEO EARNING TRUST 08.08.2011 » Guiding concept and mission Project cooperation on corporate responsibility » A forward-looking and responsible approach has Sustainable investments between Munich University of Applied » been focused by Munich Re for many years. Responsibility towards staff Sciences and Munich Re » Corporate Responsibility is and has always been Foundations » an integral part of Munich Re’s Group strategy. Performance indicators » Nikolaus von Bomhard, Chairman of the Board 04.08.2011 of Management Environmental certification at Munich Re Download (Munich) and ERGO, Germany successfully confirmed » Corporate Responsibility Short Report 2010/2011 (PDF) GUIDING CONCEPT AND MISSION 19.07.2011 Munich Re invests in solar parks OUR CORPORATE RESPONSIBILITY With our new corporate responsibility mission, 17.06.2011 the Munich Re Group commits itself more Munich Re’s head office in Munich achieves strongly to the corporate responsibility we carbon neutrality again in 2010 exercise towards our stakeholders and our social commitment. » Corporate responsibility at Munich Re 23.05.2011 Future UN PRI chair Wolfgang Engshuber meets UN Secretary-General Ban Ki-moon » News archive 1 Contact Privacy Statement Legal Notice Imprint CORPORATE RESPONSIBILITY MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES » Home CEO statement Nikolaus von Bomhard, Chairman of Munich Re's Board of Management, on forward-looking and responsible action in Munich Re (Group). » more STRATEGY AND CHALLENGES Mission Corporate responsibility at Munich Re – Living up to our responsibility Munich Re consistently pursues its entrepreneurial guiding concept of turning risk into value. Responsible and forward-looking action – our corporate responsibility – plays a major role in the way we approach the risks and Responsible action is an integral part of opportunities presented by the great challenges of our time. We are therefore Munich Re's Group strategy and is of clearly committed to maintaining sustainable development in the future in order relevance to all business activities. to protect the environment and meet our social obligations. » more The business model of insurance is built on the insurer's ability to always meet the Fields of action and objectives obligations assumed under its contracts. Insurers are sometimes not released from these obligations until decades later. Our clients’ confidence in our financial stability is hence the basis of our business. That is why our business model is more than ever inseparably tied to the know-how needed to assess risks and to long-term, responsible management. For this reason, Munich Re (Group) has initiated a process to develop a Group-wide and cross-divisional corporate responsibility concept. In March 2011, the Board of Management ratified an enhanced Group-wide corporate responsibility strategy whose overriding objective is to include corporate responsibility criteria in business. The Our new mission highlights five fields of strategy also includes dialogue with our key stakeholders: clients, staff, investors, action. These constitute the pillars of NGOs and experts from the world of science and politics. This exchange enables us to our Group-wide corporate responsibility identify important social challenges and changes, for which we offer suitable business concept. » more solutions or develop them for the future. Organisational anchoring of our corporate responsibility Milestones In 2008, we assigned the field of corporate responsibility to a separate unit at our Munich headquarters. This unit is incorporated in the Group Development Division, which is responsible for developing Group strategy and reports directly to the Chairman of the Munich Re Board of Management. It carries out its tasks at Group level and in direct consultation with the Group's primary insurance segment. At ERGO, corporate responsibility is also an integral part of its corporate strategy and directly assigned to the Chairman of the Board of Management. A separate unit within the Group Communications Division coordinates implementation between the various departments. As an insurance and reinsurance group, we work responsibly to develop forward-looking solutions. In this way, we make tomorrow’s world insurable. » more Stakeholder dialogue We have always valued open dialogue with our stakeholder groups. Such dialogue is the starting point for mutual understanding and trust. » more Challenges 2 Key factors such as climate change present us with many new tasks. We meet these tasks flexibly and with innovative solutions. » more 3 Contact Privacy Statement Legal Notice Imprint CORPORATE RESPONSIBILITY MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES » Home » Strategy and challenges Earning trust – STATEMENT BY Corporate Responsibility at Munich Re THE CEO Dear Ladies and Gentlemen, Munich Re lives from the trust people place in us. As one of the world's leading insurers, we give our clients the promise that we will always fulfil the obligations we assume under insurance contracts. That is why it has always been our aim as a company to act responsibly and, in this sense, corporate responsibility has been and will remain an integral part of our Group strategy. Unacceptable incidents at ERGO that recently came to light show that we need more than ever to uphold the value of responsible conduct. We do not tolerate the failure of individual staff members or intermediaries to live up to their responsibility within the company, nor any actions that place our company in a bad light and tarnish its reputation. These events have had the effect of redoubling ERGO's efforts to achieve greater transparency, strengthen its client focus and provide better advice and Nikolaus von Bomhard, Munich Re consulting in keeping with the motto, "To insure is to understand". Of course, all the Chairman of the Board of Management necessary consequences are being taken in the organisation, for example in compliance management. Following the "Lehman" crisis, controversies over the stability of national economies and the future of the euro have once again culminated in extensive volatility on the capital markets. Thanks to our risk and investment management's orientation toward sustainable earnings, we are in a good position. By signing the United Nations' "Principles for Responsible Investment" (PRI) in 2006, we committed ourselves to adhere strictly to those principles. For example, we make at least 80% of our investments in shares and corporate and government bonds that satisfy sustainability criteria. And in the coming years, we intend to invest two-and-a-half billion euros in renewable energies and corresponding new technologies. In 2011 alone, we have been able to expand our "renewable energies" (wind and solar) portfolio by about 160 megawatts to a total generated output of about 300 million kilowatt hours. This is equivalent to the annual consumption of a small city consisting of about 80,000 households. In our core business, too, we are accepting global challenges ranging from climate change to demographic trends, to combating poverty in developing countries. An an insurance company, we can help to deal with these challenges primarily by identifying, assessing and pointing out the associated risks early on, and then offering innovative insurance solutions for them wherever possible. Two relatively recent examples of this are new concepts for covering performance guarantees offered by manufacturers of wind farms and solar parks and the assumption of the exploration risk entailed in geothermal drilling operations. We are also actively working on formulating globally binding principles for the core business of insurance. Together with other major providers of financial services, we are taking part in the development of internationally recognised "Principles for Sustainable Insurance" under the auspices of the United Nations' Environment Programme. We made our commitment to the values we hold dear a matter of public record in