German reinsurance major Munich Re has exited several high-profile climate finance alliances, citing growing legal and regulatory ambiguities across jurisdictions. The company confirmed its withdrawal from the Net-Zero Asset Owners Alliance (NZAOA), Climate Action 100+ (CA100+), the Net Zero Asset Managers initiative (NZAM), and the Institutional Investors Group on Climate Change (IIGCC).
Munich Re, one of the world’s largest reinsurers, oversees €360 billion in assets through its investment arm MEAG and climate-focused subsidiary Munich Re Investment Partners. While Munich Re itself was affiliated with NZAOA and CA100+, its boutique arm had joined NZAM. MEAG was not a NZAM signatory but had signed on to CA100+, co-leading engagement with German conglomerate Thyssenkrupp, and was also an IIGCC member.
Despite its exit from these initiatives, Munich Re remains a founding signatory of the Principles for Responsible Investment (PRI), which it continues to support.
In a statement, the firm said it faced “increasing ambiguity in assessing private initiatives under the legal and regulatory regimes across various jurisdictions,” warning of potentially conflicting obligations and “legal uncertainty”. It also criticised the complex and often inconsistent reporting expectations, which it deemed “disproportionate to the impact achieved in terms of climate protection”.
While affirming its commitment to climate-related goals, the company stated that it would now pursue its targets independently in a “more focused and targeted manner” and avoid what it described as burdensome non-regulatory reporting.
Munich Re noted that it had already achieved or exceeded its 2025 interim climate targets and would announce updated goals later this year in line with its new corporate strategy. Under its previous NZAOA commitments, the firm had pledged to double investments in renewables to €3 billion and reduce emissions linked to thermal coal, oil and gas assets, as well as in listed equities and real estate holdings.
Responding to the announcement, a spokesperson for NZAOA confirmed Munich Re’s climate targets remain in place. “NZAOA membership is entirely voluntary and each member retains the independence to make decisions that best align with their portfolios and objectives,” they said.
The IIGCC noted that it imposes no reporting obligations on its members and includes a legal compliance disclaimer on its website.
Munich Re had already withdrawn from the Net-Zero Insurance Alliance in early 2023, a move that precipitated a broader exodus and ultimately led to the alliance’s rebranding as the Forum for Insurance Transition to Net Zero. The company has not returned to the revised group.
Munich Re is not alone in citing legal risk as a reason for departure. Allianz, another major German insurer, made a similar decision last year, citing shareholder protection.
Climate Action 100+ has comparatively few German members, with smaller countries such as the Netherlands, Switzerland and Sweden being more heavily represented. Within Germany, insurer-affiliated firms continue to dominate participation, with companies such as Allianz, HUK-Coburg, and Debeka still active.
Participation in IIGCC and NZAM by German insurers also remains limited. Aside from Allianz and Munich Re’s former involvement, Munich-based Lebensversicherung von 1871 is an IIGCC member. Foreign insurers operating in Germany, such as AXA and Generali, remain participants in both groups.
