A major founding member of an industry-wide alliance of insurers focused on cutting carbon emissions, German multinational insurance company, Munich Re has announced its withdrawal from the group.
Munich Re, the largest reinsurer in the world, vowed on Friday to adhere to its own climate goals but announced it would leave the Net-Zero Insurance Alliance to avoid antitrust issues.
Since Republican lawmakers oppose collective actions related to climate change and other so-called ESG issues, antitrust concerns are at the heart of a growing sustainability backlash in the United States.
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Although there are no known instances of a company being the subject of an antitrust lawsuit because of its practices, some Republican lawmakers’ activities in the United States have made many financial firms afraid of the possibility.
According to the CEO of Munich Re, Joachim Wenning, it is more effective for the company to pursue its climate ambition individually to reduce global warming.
According to the website of the UN-convened alliance, it consists of 30 insurers and reinsurers, including Allianz and Axa, who together account for 15% of the world’s insurance premium volume.
The alliance was created in 2021, with Munich Re as a founding member.
Story was adapted from Climate Home News
