Munich Re, one of Europe’s largest insurance companies, and the world’s biggest reinsurer, announced today that it will no longer provide insurance coverage or investment for new oil and gas projects, as part of a series of new guidelines supporting the company’s decarbonization goals.

The new guidelines follow the release in 2020 of Munich Re’s Ambition 2025 strategy, which, in addition to setting growth and profitability goals for the company, also established a framework for the decarbonization of its insurance, reinsurance and investment activities, on the path to reaching net zero emissions by 2050. Ambition 2025 climate-related goals include reducing the net greenhouse gas (GHG) emissions of Munich Re’s investment portfolio by 25-29% by 2025, and reducing coal-related exposure in its insurance business by 35%.

Under Munich Re’s new guidelines, the company has committed, as of April 2023, to no longer invest in or insure contract or projects exclusively covering the planning, financing, construction or operation of new oil and gas fields that have not had production before year-end 2022, new midstream oil infrastructure, or new oil-fired power plants.

Additionally, in its liquid equities and corporates portfolio, Munich Re has committed to no longer make new direct investments in pure-play oil & gas companies as of April 2023, and by January 2025 the company will require credible 2050 net zero commitments from listed oil & gas companies with high levels of emissions.

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