Allianz and Munich Re are below strain resulting from oil commitments

Munich The foremost insurers are dealing with new criticism for his or her continued involvement within the oil and fuel business. The worldwide NGO community Unfried Coal / Insure our future calls on 30 insurance coverage corporations worldwide to cease insuring new oil and fuel initiatives and coal corporations. In an open letter, which is out there to the Handelsblatt, the community helps the exit from all fossil fuels.

The main target of the community of environmental and human rights associations is on the 2 German market leaders Allianz and Munich Re. “Whereas eight of the biggest oil and fuel insurers, together with Allianz and Munich Re, have already made extreme restrictions on coal insurance coverage, and 4 of them have dedicated to aligning their portfolios to the 1.5 diploma situation, the oil and fuel sector is little has occurred up to now, ”says the letter.

Oil and fuel emissions account for 55.6 % of worldwide CO2 emissions. Solely Axa and Munich Re would have restricted their insurance coverage cowl for oil sands initiatives, and even fewer insurers would have restrictions on oil manufacturing within the Arctic and on shale oil manufacturing.

The insurance coverage market is especially centered on oil and fuel. The highest 10 within the business share round 70 % of the market. “The insurance coverage market within the oil and fuel sector is so concentrated that even the motion of fewer insurers can have a serious affect,” says Regine Richter from Urgewald. Because of the low proportion of premiums, the exclusion of oil and fuel initiatives would profit insurers
do not even damage an excessive amount of. “This significantly applies to insurers who, as members of the Web-Zero Asset Proprietor Alliance, promise local weather safety like Allianz and Munich Re,” says Richter.

The alliance was a founding member of the United Nations-initiated Web-Zero Asset Proprietor Alliance final 12 months. Munich Re joined the alliance this 12 months. The intention of the merger of the world’s largest pension fund and insurers is to make their funding portfolios local weather impartial by 2050. In the intervening time, round $ 5 trillion value of funding funds are pooled there.

At Allianz, it’s confirmed that the exclusion of particular person property has up to now solely centered on the coal sector. Nothing ought to change there till additional discover. “We’re pursuing the purpose of a 1.5 ° C suitable economic system. To do that, all sectors should considerably scale back their greenhouse fuel emissions over the following three a long time, ”explains Urs Bitterling, Head of Sustainability on the Allianz Group. As a founding member of the investor community Web-Zero Asset Proprietor Alliance, the group depends on dialogue with corporations, together with these from the oil and fuel sector, about their local weather methods and discount targets.

Allianz considers it to be way more wise to take a crucial have a look at the typically dilapidated infrastructure in oil and fuel pipelines, as will be heard elsewhere. There are main leaks in lots of locations, inflicting big quantities of oil and fuel to seep into the bottom, inflicting large environmental harm. The group is now checking the infrastructure of the oil and fuel teams with its personal workers. And consequently separates itself from participations if corporations react inconsistently to such indications.

On the finish of April, Allianz held the common NGO dialogue, during which representatives of Greenpeace, WWF and Urgewald additionally mentioned with the board members Oliver Bäte and Günther Thallinger.

Munich Re doesn’t wish to formally touch upon the allegations of the NGO community. Internally, nevertheless, oil and fuel are nonetheless thought-about to be transitional power sources that shall be wanted in each the non-public and industrial sectors within the coming years earlier than there are adequate alternate options.

Extra: In an interview with the Handelsblatt, Swiss Re boss Christian Mumenthaler warns of a second corona wave and billions of {dollars} for the business.

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