Munich Re Helps UN Launch ‘Principles for Responsible Investment’

Munich Re was one of a number of large investment groups who became original signatories for the United Nations “Principles for Responsible Investment,” launched last week by UN Secretary General Kofi Annan.

Groups from 16 countries officially signed the Principles at a special launch event at the New York Stock Exchange. They represent a total aggregate value of assets of more than $2 trillion.

“These Principles grew out of the understanding that while finance fuels the global economy, investment decision-making does not sufficiently reflect environmental, social and corporate governance considerations – or put another way, the tenets of sustainable development,” Annan stated.

“Developed by leading institutional investors, the Principles provide a framework for achieving better long-term investment returns and more sustainable markets. I invite institutional investors and their financial partners everywhere to adopt these Principles,” he added.

The UN’s bulletin notes: “More than 20 pension funds, foundations and special government funds, backed by a group of 70 experts from around the world, held meetings in Paris, New York, Toronto, London, and Boston over an eight-month period to craft the Principles.”

Denise Nappier, Treasurer of the State of Connecticut, who is the principal fiduciary of $23 billion in pension fund assets commented: “We are proud to endorse the Principles, which recognize that social and environmental issues can be material to the financial outlook of a company and therefore to the value of our shares in that company. Financial markets tend to focus too heavily on short-term results at the expense of long-term and non-traditional financial fitness factors that could affect a company’s bottom line. For many institutional investors it is the long-term that matters and in this context environmental, social and governance issues take on new meaning.”

Munich Re noted that the Company had participated in the development of the principles, and was represented in both the Expert Group and the Investor Group.

Dr. Heiner Hasford, member of Munich Re’s Board of Management responsible for investments, commented: “Signing up to the Principles for Responsible Investment is the logical continuation of our commitment in this area. Five years ago, Munich Re adopted a set of sustainability criteria for the acquisition of shareholdings. The following year, we extended this approach generally to all investments in equities and corporate bonds.”

Not surprisingly the Group’s bulletin noted that its own “shares are recognized as a sustainable investment,” as “reflected by their listing in all the important European sustainability indexes, like the Dow Jones Sustainability Index (DJSI) and the FTSE4GOOD.”

Topics Pollution