For many years the Group has supported the goals set out in the Paris Agreement on climate change. The governments of 195 nations reached agreement on a global action plan for a low-carbon economy with a view to combating climate change. In Europe alone 17 of 28 EU member states have decided to phase out fossil fuels or are discussing such a move.
In order to support the climate goals, the company does not invest in securities of issuers that generate 25% or more of their revenues from coal-based energy production. On the underwriting side, in its capacity as a reinsurer the Group is supporting the process of transformation in the energy industry through its long-standing efforts to write more risks associated with renewable or alternative energy sources. Where stand-alone risks are concerned, the company will now – as a general principle – not be providing reinsurance coverage for any planned new coal-fired power plants or coal mines. In countries where coal accounts for a particularly large share of the energy mix and sufficient access to alternative energy sources is not available, a limited number of exceptions will be permitted after review of the technical standards.
Furthermore, the Group has set itself the goal of no longer covering any coal-based risks in connection with power generation in its entire property and casualty reinsurance portfolio from the year 2038 onwards. The time horizon of 2038 makes allowance for the fact that the phase-out of fossil fuels can only take place over the medium to long term.