Second-Party Opinion Download

Sustainalytics is of the opinion that Munich Re’s Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation, Green Buildings, Sustainable Water and Wastewater Management, Eco-Efficient and/or Circular Economy, Environmentally Sustainable Management of Living Natural Resources and Land Use – are aligned with those recognised by the Green Bond Principles 2018. Sustainalytics considers that the eligible project categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals (SDGs), specifically SDG 6, 7, 11, 12 and 15.

PROJECT EVALUATION/SELECTION

Munich Re’s Head of Alternative Investments will be in charge of proposing eligible projects to a Green Bond Committee, which will be responsible for project evaluation and selection. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Munich Re’s Group Investment Management department will manage the allocation of net proceeds using a portfolio approach. Pending full allocation, funds will be allocated to temporary investments such as cash, cash equivalents and/or other liquid instruments giving priority to green bonds and following the exclusion criteria established in the Green Bond Framework. This is in line with market practice.

REPORTING

Munich Re commits to publish allocation and impact reporting on its website a year after each issuance and annually thereafter until full allocation. Allocation reporting will include the net proceeds of the outstanding green bonds; amount of net proceeds allocated to each category; a list of projects including a description and allocated amounts (subject to confidentiality considerations); proportional allocation of net proceeds to existing and new projects; and remaining balance of unallocated net proceeds. Munich Re is committed to providing impact reporting for each project category (provided net proceeds have been allocated to projects within such category) through key performance indicators. Sustainalytics views Munich Re’s allocation and impact reporting as aligned with market best practice.