Corporate Responsibility Short Report 2012/2013

Transcription

1 Corporate Responsibility Short Report 2012/2013

2 A forward-looking and responsible approach throughout the organisation is an integral part of Munich Re s Group strategy as a global insurance provider. This short report provides an overview of how Munich Re exercised corporate responsibility (CR) in the financial year More information about our current measures and projects, along with detailed data material, is available on our corporate responsibility portal at p. 1 Foreword p. 2 Strategy p. 4 Corporate governance p. 5 Responsibility in business p. 8 Employees p. 10 Environment p. 12 Corporate citizenship p. 14 Key figures p. 15 Ratings and awards p. 17 Imprint 2

3 Munich Re Corporate Responsibility Short Report 2012/13 Foreword Ladies and gentlemen, Signing the Principles for Sustainable Insurance (PSI) during the Rio+20 Conference in June 2012 was a significant milestone. After all, as globally applicable sustainability principles developed by the United Nations Environmental Programme Finance Initiative (UNEP FI), the PSI will influence our industry s approach and business practices internationally. More than 60 companies and organisations from the insurance sector have signed the PSI to date. The PSI, which we helped develop, serve as the framework for integrating aspects of ecology, social responsibility and good corporate governance into our core business. Insurance, as a promise for the future, naturally attaches great importance to sustainability. So it is only logical that this objective is expressly defined as an integral part of our core principles. The PSI complement the voluntary commitments to which Munich Re has already signed up, such as the UN Global Compact and the Principles for Responsible Investment (PRI). The latter serve as a guideline, implemented by our asset manager MEAG, for investing in accordance with sustainability criteria. our environmental management system, which has meanwhile been rolled out worldwide, and our social commitment are further important aspects of our strategy. For us, longterm financial success is fundamentally linked to caring for people and the environment. The activities of our corporate foundations are also contributing to this aim, particularly in the field of natural disaster prevention and in helping to alleviate human suffering. As you can see, a sustainable approach is the hallmark of our business and our organisation worldwide. our ratings on the FTSE4Good and Dow Jones Sustainability Indices are further evidence of this. We take this as an incentive for continuous improvement, an aspect we also address in this report. I wish you a stimulating read. Nikolaus von Bomhard Chairman of the Board of Management July

4 Munich Re Corporate Responsibility Short Report 2012/13 Strategy» A forward-looking and responsible approach is an integral part of our Group strategy. «Dr. astrid zwick Head of Corporate Responsibility, Munich Re Strategy Our responsible approach creates sustainable value for our clients, staff, shareholders and society. Corporate responsibility is therefore an integral part of our Group strategy, involving all our fields of business and our investments. The ten principles of the United Nations Global Compact, of which we are signatories, serve as a framework for this. Volatile financial markets and changes in social structures are just some of the challenges facing us and changing our business environment. Actively addressing these challenges and seeking solutions are part of our corporate responsibility. Munich Re s operations throughout the Group are marked by a responsible approach. In our corporate responsibility strategy, we break this down into three main components: for us, corporate responsibility means integrating the aspects of ecology, social responsibility and corporate governance, the so called ESG aspects, into our core business and investments. With our environmental management system, we are pursuing the goal of protecting natural resources at our business locations and realising carbon neutrality for the whole Group. As a responsible corporate citizen, we also address socially relevant issues closely related to our business. The ongoing management and regular reviewing of our corporate responsibility strategy, plus our annual reporting and regular communication with our stakeholders, supplement the corporate responsibility strategy s five fields of action. We achieved various milestones in the past year. At the end of 2012, a cross-business-field Corporate Responsibility Committee was set up for the Group-wide management of the corporate responsibility strategy. At the beginning of 2013, the principles of the United Nations Global Compact on topics like human rights, working conditions, environmental protection and anti-corruption were incorporated into Munich Re s Code of Conduct. 2

5 > 60 insurance companies and organisations have signed the PSI so far. The UNEP FI PSI (United Nations Environmental Programme Finance Initiative; Principles for Sustainable Insurance), which we signed in June 2012 together with other insurers, serve as a framework for integrating the aspects of ecology, social responsibility and good corporate governance specifically into our core business. This approach enables us to optimally minimise risks and devise new solutions in cooper ation with our clients. As far as our investments are concerned, since 2006 we have been basing our operations on the Principles for Responsible Investment (PRI), which we successfully implement through our asset manager MEAG. In our Group-wide environmental management, our objective is to make business operations throughout our Group carbon-neutral by Since 2012, this aim has been achieved for the entire reinsurance group. Our Munich site has been carbon-neutral since 2009, as have the major locations of ERGO Germany since At the same time, we are systematically expanding our environmental management system, which was extended to 75% of our employees worldwide in More on the topic of strategy can be found at We intend to develop our social commitment at Munich Re s different business locations further. Our corporate citizenship concept envisages placing more emphasis on sponsoring projects to which we can contribute our Group s expertise, especially in the area of natural disaster prevention in emerging and developing countries and for adapting to the consequences of climate change. Fields of action of our CORPORATE RESPONSIBILITY Strategy and governance Corporate responsibility in business Environmental management Corporate citizenship Reporting and communication CR 1 objectives and fields of action Compliance with UN Global Compact Principles Integration of CR issues into (re)insurance business (PSI 2 ) Integration of CR into asset management (PRI 3 ) Group-wide CO 2 neutrality Global environmental management strategy Active governance of social responsibility and community involvement Group-wide CR web portal Group-wide CR reporting Position in major SRI ratings core activities ACTIon guidelines 1 CR = Corporate responsibility 2 PSI = UN Principles for Sustainable Insurance (signed by Munich Re in 2012) 3 PRI = UN Principles for Responsible Investment (signed by Munich Re in 2006) 3

6 Munich Re Corporate Responsibility Short Report 2012/13 Corporate governance Corporate governance The activities of all employees in our Group are aligned to responsible corporate governance. To this end, Munich Re s Code of Conduct lays down binding rules of conduct for all our companies and their staff. At the same time, our corporate governance is also based on our comprehensive view of all types of risk. In 2012, we extended the Code of Conduct to include a guideline for fair and clientoriented conduct and integrated the principles of the United Nations Global Compact into the Code s preamble. Besides this, we naturally comply with the corporate gover n- ance rules of the markets in which we operate. 28 experts from various units make up our Emerging Risk Think Tank. Our internal control system (ICS) for operational risks and our Emerging Risk Think Tank are geared to the comprehensive quantitative and qualitative identification of risks. This helps us to actively manage the risks we have assumed, to protect ourselves against financial losses or new risk scenarios, and to maintain our Group s financial strength. We devote particular attention to the early identification and avoidance of possible reputational risks. Where necessary when alerted, the Compliance Officer and the Reputational Risk Committees of our business fields can act quickly and give clear recommendations. The Reputational Risk Committees are specifically responsible for individual issues relating to business transactions. By further developing our compliance systems, we also provide for comprehensive and efficient value management. Last year, for example, ERGO established a separate compliance unit reporting to the CEO. At the same time, it tightened its compliance rules and drew up a Code of Conduct for its independent field staff. Our compliance systems are supplemented by Group-wide anti-fraud management, which comprises strategies, responsibilities and concrete action plans for preventing and detecting fraud and corruption at Munich Re companies. More on corporate governance at corporate governance For us, corporate governance means much more than just complying with the law. Rather, as part of our corporate responsibility approach, it is a cornerstone and guideline for our corporate thinking and action. 4

7 Munich Re Corporate Responsibility Short Report 2012/13 Responsibility in business» The average individual does not realise how insurance, by either transferring or mitigating risk, positively affects much of what happens in society.«tony KucziNSki President and CEO, Munich Reinsurance America, Inc. Responsibility in business A forward-looking and responsible approach is fundamental for Munich Re. It is essential for securing the long-term success of our business model, creating lasting value, and strengthening the confidence of our clients, investors and society in our work. For Munich Re, responsibility in business involves both sides of the balance sheet. We document this approach through our voluntary commitments such as the Principles for Sustainable Insurance (PSI) and the Principles for Responsible Investment (PRI). In preparation for signing the PSI, we undertook an extensive review of the status quo in each of Munich Re s business fields, recording the extent to which sustainability aspects had already been taken into account in products, solutions and processes. On this basis, we developed a framework for integrating ESG (environmental, social and governance) aspects into our core business, with appropriate focal points in the individual business fields. In reinsurance, the emphasis is on the consideration of ESG aspects in the underwriting process and in dialogue with our clients and business partners. The ERGO Group, which mainly writes personal lines insurance, is focusing on the development of new products, on making existing ones easy to understand, and on a holistic sales advice approach. In commercial and industrial business, it is following the same approach as in reinsurance. With Munich Health, the focal points are access to medical care, disease prevention and management of chronic illnesses. In this field of business, we attach importance to sharing our best practices across organisational and geographical boundaries. 5

8 Munich Re Corporate Responsibility Short Report 2012/13 Responsibility in business Sustainable investments On the capital market side, our asset manager MEAG offers fund products that focus on sustainable growth stocks. Guidelines for investments geared to sustainability criteria are provided by the Principles for Responsible Investment (PRI), which we implement via MEAG. At least 80% of our holdings in equities, corporate and government bonds, and real estate (constructed since 2010) meet sustainability criteria. In our RENT (Renewable Energies and New Technologies) project, Munich Re and MEAG plan to invest 2.5bn in renewable energies and innovative technologies by The focus here is on the aspects of increasing efficiency and storing energy. Renewable energies Wind power Bioenergy Geothermics Solar energy Hydropower RENT Renewable Energies and New Technologies Resources Increasing efficiency Grids Storage media Energy conversion sites (e.g. wood, biowaste, silicon) (e.g. insulation, CO 2 levy) (e.g. expansion, deregulation) (e.g. battery technology) (e.g. solar modules) New TECHNoloGIES Focal topic: Climate change Munich Re actively advances climate protection and adaptation to climate change not only through its investments in renewable energies but also through its own range of risk transfer solutions. With our innovative coverage concepts for renewable energies in reinsurance, we function as a kind of catalyst for sustainable energy generation technologies. Thus new, increased guarantee covers facilitate the financing of, for example, major solar energy projects. Our primary insurer, ERGO, offers a large number of insurance solutions that help protect the environment. They range from eco-rates in motor insurance to unitlinked annuity insurance policies that take ecological aspects into account. 6

9 Another example is the power from the desert company Dii, which was co-founded by Munich Re and is working on accelerated market development for renewable energy from the deserts of North Africa and the Middle East. The long-term aim of this project is to develop an extensive energy alliance for North Africa, the Middle East and Europe, in which solar and wind power play a decisive part. Tailored solutions 905 natural catastrophes throughout the world were documented in Innovative insurance solutions are provided by microinsurances, which we are realising in the context of public-private partnerships. These products are specifically tailored to the financial situation and personal circumstances of people in developing and emerging countries. Our subsidiary HDFC ERGO offers small farmers in southern India insurance cover against weather-related events like floods or heatwaves. In the past financial year, we wrote gross premiums of over 40m in this sector, thus significantly increasing the number of farmers and their families covered against these risks. Our product SystemAgro is geared to other markets and scales of farming. Especially in North America, it provides cover against crop failure for a whole range of arable crops, hence enabling agricultural land to be reliably managed and crop incomes to be safeguarded. A key factor in realising this product is the loss data we have recorded over four decades, the subsequent analysis and evaluation of which is systematically incorporated in our products and partnerships. More on responsibility in business can be found at More on sustainability at ERGO can be found at The basis for this is Munich Re s NatCatSERVICE, a globally unique loss data base with more than 30,000 entries. It enables insurers and other institutions to determine precisely the exposure of specific locations to natural catas trophes, to optimise their risk management accordingly, and to avoid losses. This service is thus another example of how our approach to responsibility in business is translated into measurable value for many.» The social responsibility of companies is being increasingly reflected in their products.«dr. JOSEP SANTACREU CEO, DKV Seguros, Spain 7

10 Munich Re Corporate Responsibility Short Report 2012/13 Employees Employees The success of our Group is essentially due to the constant efforts and dedication of our staff. We aim to win the most talented people for Munich Re, to systematically help them develop their potential, skills and capabilities, and to grow profitably and sustainably with a diverse, highly motivated workforce. 29% of managerial staff in the Group are women. We offer our staff a broad range of qualification opportunities and systematic career partnering. Our talent management supports staff in their professional development and enables us to fill many key positions internally with very well qualified people. Flexible working hours and childcare models, along with extensive healthcare programmes, ensure that a high level of commitment to Munich Re is not to the detriment of family and health. Throughout the Group, employees also have access to medical care, sport and recreation facilities, and support in reintegrating after a prolonged absence. Diversity management in all fields of business It is our aim to promote and develop diversity in our Group. Different experience, backgrounds and perspectives enhance our ability to understand clients and master new challenges in a global environment. With our diversity management launched in 2011, we have begun to realise this objective in all areas of our Group, with the focus on the aspects of internationality, gender and age. Across our fields of business, we have set ourselves the target that women should make up at least 25% of our managerial staff in Germany by the end of At ERGO, diversity management has long been one of the top initiatives in the form of a flagship project involving numerous activities and measures. 8

11 In reinsurance, the international aspect of diversity management is also playing an increasingly important role. We promote internationality through greater job rotation among our staff and short-term international assignments. In the increasingly international orientation of diversity management, local requirements are a central factor, as illustrated particularly clearly by our subsidiary in South Africa. Here, the focus is on the ethnic composition of the workforce, and we are thus promoting the development of African female managers, who have so far been under-represented in our management teams. Munich Re: An attractive employer More on the topic of employees can be found at Recruiting, developing and retaining highly motivated and qualified staff is one of our Group s central objectives. This applies both globally and locally. Evidence that we are on the right track here is provided by the following examples. CNNMoney ranked us as one of the ten Most Admired Companies among insurers. Our subsidiary DKV Seguros was named one of the most attractive employers in Spain, achieving third place nationally. And in both the Trendence graduate barometer and Universum Communication s employer ranking, Munich Re is one of the top 100 employers in the business sector.» Diverse teams are significantly more creative in solving problems and also faster in realising ideas.«junior NGUlUBE CEO, Munich Reinsurance Company of Africa Ltd. 9

12 Munich Re Corporate Responsibility Short Report 2012/13 Environment The awarding-winning photovoltaic system provides Munich Re in Princeton, USA, with green electricity from 12,000 square metres of solar panels. One of a series of award-winning GreenBuilding properties owned by MEAG: Oval Offices, Cologne. Environment As reinsurers, we are particularly familiar with the risks and consequences of climate change. Taking preventive measures, raising awareness and promoting eco-friendly technologies are therefore the three main pillars of our environmental commitment, with which we are continually improving our own ecological performance. 10% of CO 2 emissions per employee will be saved between 2009 and Our Group-wide environmental management framework, adopted by the Board of Management in September 2012, sets out environmental targets and guidelines, and defines the standards and responsibilities for implementation. Local environmental managers ensure that measurable progress is made towards our ambitious targets at our business locations. Some 32% of our employees already work at sites with environmental management certified to ISO Beyond internal Group measures, we actively promote national and international initiatives for climate and environmental protection. Thus we are involved in the United Nations Environmental Programme Finance Initiative (UNEP FI), the Global Climate Forum, and the Munich Climate Insurance Initiative (MCII). Reinsurance group and ERGO Germany reach carbon neutrality In connection with our own operations we seek to record and reduce as far as possible our consumption of energy, paper and water, the amount of waste we create, and the business travel we undertake. We are consistently working on reducing our own carbon emissions and aim to make the whole Group carbon-neutral by The reinsurance group and our primary insurer ERGO Germany achieved this status already last year. We have succeeded 10

13 in reducing carbon emissions per employee to an average of four tonnes per year the remaining emissions are being neutralised by purchasing carbon credits. We are gradually converting further sites to green electricity and equipping our car fleet with fuel-efficient or low-carbon vehicles. GreenBuilding certificate for several office properties 75% of employees Group-wide are working in entities that are carbon-neutral. More on the topic of environment can be found at Both in our own buildings and in the real estate owned by our asset manager, we pay attention to modes of construction and operation that save resources and energy. Buildings like the Stockholm Waterfront Building or the Cologne Oval Offices have been awarded the EU s GreenBuilding certificate for energy efficiency and user friendliness. Besides this, Munich Reinsurance America last year won the NFMT FMXellence Award in recognition of its outstanding achievements in the field of energy saving. A particularly notable innovation was the roofing-over of the whole parking area at the Princeton/New Jersey site with solar panels. These panels now provide the onsite buildings of Munich Re in Princeton with 2.5 megawatts of power each year, cutting electricity bills by nearly US$ 500,000. Surplus electricity, such as that generated at weekends, is fed into the grid for the surrounding communities. STRATEGy for CO 2 neutrality kg CO 2 per employee* 1st step: Reduction 2nd step: Offsetting 4,800 4,200 Carbon dioxide emissions per employee: 4,800 kg CO 2 Avoidance and reduction e.g. via green IT and energy-efficient buildings Substitution e.g. by purchasing green electricity Offsetting Via purchase of certificates on the market * Data updated due to increased coverage of CO 2 emissions gathered throughout Munich Re Group. 11

14 Munich Re Corporate Responsibility Short Report 2012/13 Corporate citizenship Buildings destroyed by an earthquake in Aizawl, northeastern India. Efficient drip irrigation of farmland in India. Corporate citizenship Our role as a good corporate citizen takes as its starting point our business locations and our core competencies, centring on projects where our involvement has the greatest possible benefit for people, society and the environment. Our expertise for society Selected project examples 106,000 people die on average each year as a result of natural catastrophes. Our choice of donations and sponsorship projects follows the thematic focal points of our Group-wide corporate citizenship concept: besides social and cultural projects at our business locations, the emphasis is on business-relevant topics to which we can contribute tangible benefit for society through our know-how in risk assessment and risk prevention. These are mainly projects from the fields of natural disaster prevention, protection of natural resources, and healthcare promotion. With a view to mitigating earthquake risks, for instance, we are supporting a two-year project in northern India, partnered by GeoHazards International. In the city of Aizawl, around 300,000 people are exposed to an extremely high earthquake risk. The aim of the project is to improve local earthquake safety. The local measures include training in schools for how to behave when earthquakes occur, and the structural consolidation of public buildings like schools, hospitals, administration offices and other important infrastructure. 12

15 As the partner organisation of Water Benefit Partners, we are currently also promoting the development of innovative Water Benefit Certificates. This standard is intended to make water protection projects scaleable and tradeable, thus creating long-term incentives for efficient water management. The principle has been tested and successfully applied in practice in an agricultural irrigation project in India. From emergency medical aid and education programmes to cultural partnerships A wide range of social projects are being realised in our international organisation. With the AMREF Foundation, for example, ERGO Austria is supporting a medical aid organisation in eastern Africa that focuses on mother-child healthcare. Among other things, the organisation operates a 24-hour flying doctor service, which transports doctors to emergency patients in remote bush hospitals. Munich Re of Africa gives financial support to the Girls and Boys Town organisation, which cares for disadvantaged, abused or neglected young people in several South African cities. And in the USA, Munich Re is the main sponsor of the annual Eden Autism Services charity run to raise funds for autistic children and adults. The social commitment of our Group is complemented by our employees corporate volunteering projects and the broad-ranging activities of our corporate foundations. For a number of years now, for instance, the Munich Re Foundation has staged the annual International Microinsurance Conference, the world s largest platform for this topic. The Dr. Hans-Jürgen Schinzler Foundation, established in 2004, is today the platform for all corpor ate volunteering activities at our Munich site, providing support for numerous charitable projects in which our staff are involved. The main aim of ERGO s Youth & Future Foundation is to enhance personal and career opportunities for children and young people. In bildungsstifter (educational promoters), it has created a well-frequented platform for projects that take innovative approaches to education and training. With its Fundación Integralia, DKV Seguros in Spain is systematically promoting the integration of employees with disabilities. No other Spanish company currently employs more staff with physical disabilities than this Munich Re subsidiary. ERGO Hestia, another Munich Re Group member, is meanwhile pursuing a similar integration model. More on the topic of corporate citizenship can be found at In the cultural sector, Munich Re entered into a close partnership with the Städtische Galerie im Lenbachhaus, a municipal art museum in Munich, at the end of 2012 for the coming three years. The aim of the cooperation is to promote communication of contemporary art, critically discuss socially relevant issues in dialogue with young artists, and realise various innovative project models. 13

16 Munich Re Corporate Responsibility Short Report 2012/13 Key figures Key figures Financial indicators Operating result m 5,350 1,180 3,978 4,721 Consolidated result m 3, ,430 2,564 Return on equity % Dividend m 1,254 1,110 1,110 1,072 Dividend yield % Environmental indicators Proportion of data coverage % of employees Proportion of certified Environmental Management System % of employees Total greenhouse gas emissions* kg per employee 4,082 4,468 4,196 4,784 * Emission sources: Direct emissions from primary energy consumption (natural gas, heating oil, diesel for emergency generators), indirect emissions from power supplied by third parties (purchase of electricity and district heating), other indirect emissions (business trips, fuel for company vehicles, paper and water consumption, waste excluding emissions from products and investments). We have been using the Corporate Value Chain Accounting & Reporting Standard of the Greenhouse Gas Protocol (GHG). Employee indicators Employees at ,437 47,206 46,915 47,249 Employees by field of business % Reinsurance % Primary insurance % Munich Health % Asset management Days of training Per employee Female employees in management positions (Group) % n.a.* Employee turnover rate % (weighted average turnover rate) ** * Owing to changes in the basis for calculation, there are no comparative figures available. ** Increase owing to the greater proportion of employees captured since

17 Munich Re Corporate Responsibility Short Report 2012/13 Ratings and awards Ratings and awards A selection of relevant ratings and awards Since the establishment of this rating in 2001, Munich Re has been continually listed in the various FTSE4Good index series. This rating comprises a global corporate responsibility benchmark from a total of 23 markets and 2,000 companies. Munich Re has been continually listed in the Dow Jones Sustainability Indexes since 2001, with a valuation always above average. In Sustainanalytics rating for the insurance sector, Munich Re took second place in Since 2003, Munich Re has always achieved a Prime rating, putting it among the best-in-class insurance companies. The Seal of Excellence of the German Education Prize was presented to Munich Re in 2013 in the innovation cat - egory for exemplary management of knowledge sharing. Munich Re was named reinsurer of the year for the MENA (Middle East and North Africa) region and presented with the MENA 2012 Insurance Award. For the second year running, Munich Re s subsidiary DKV Seguros in Spain took third place in a poll for the most attractive employer in Spain. 15

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19 Imprint 2013 Münchener Rückversicherungs-Gesellschaft Königinstrasse München Tel.: Fax: Board of Management: Dr. Nikolaus von Bomhard (Chairman), Dr. Ludger Arnoldussen, Dr. Thomas Blunck, Georg Daschner, Dr. Torsten Jeworrek, Dr. Peter Röder, Dr. Jörg Schneider, Dr. Wolfgang Strassl, Dr. Joachim Wenning Commercial register: Local Court Munich, HRB Supervisory authority: German Federal Financial Supervisory Authority (BaFin), Bonn VAT registration number: DE Responsible for content: Dr. Thomas Braune, Head of Group Development Dr. Astrid Zwick, Head of Corporate Responsibility Georg Justus Schwarz, Consultant Corporate Responsibility Editorial deadline: 24 July 2013 Picture credits: Cover: plainpicture p. 1: Andreas Pohlmann p. 2: Foto Meinen p. 5: Munich Reinsurance America p. 7: DKV Seguros p. 8: Myrzik & Jarisch p. 9: Munich Re of Africa p. 10 (1): Munich Reinsurance America p. 10 (2): MEAG, Markus Bollen p. 12 (1): Lalrinpuii Tlau, GeoHazards International p. 12 (2): Water Benefit Partners Disclaimer: This report 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 actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.

20 2013 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, München, Germany order number