MEAG - MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH

MEAG’s integration of ESG issues pursues three overarching objectives:
- Management of financial risks and opportunities driven by ESG aspects
- Consideration of principal adverse environmental and social impacts of its investments
- Supporting sustainability-related objectives of MEAG or its clients
ESG aspects are embedded in due diligence via asset‑class‑specific criteria set by MEAG’s experts and supported by Munich Re’s risk and climate expertise. Adverse impacts are monitored regularly. MEAG targets economically sound investments aligned with the EU Taxonomy, UN SDGs and recognized asset classed specific standards (e.g. forestry).

As the asset manager of Munich Re, MEAG focuses on long-term value-managed investments and integrates ESG aspects into investment analysis and decision-making with three main objectives: First, manage financial risks and opportunities related to ESG. Second, the consideration of principal adverse environmental and social impacts of MEAG’s investments. Third, support sustainability-related objectives of MEAG or its clients. To achieve these, MEAG applies, inter alia, investment-specific ESG analysis, exclusion criteria and active ownership. As signatory of the Principles for Responsible Investment, MEAG regularly discloses on its ESG approach.

Forestry as an asset class offers unique opportunities to integrate ESG factors due to its direct interaction with natural ecosystems, biodiversity and local communities. Sustainability aspects are therefore of growing importance in forestry investments, as they can significantly influence the economic, environmental and social value of the assets. Beyond their sustainability contribution, forestry investments are attractive due to their potential for stable income and long term value appreciation. In addition, forestry typically shows a low correlation with other asset classes, making it a valuable component for portfolio diversification. For institutional investors, forestry thus provides the opportunity to combine sustainability considerations with ongoing income and long term return potential. Sustainability is not only an inherent characteristic of the forestry asset class, but also an integral element of the investment strategy of the MEAG Sustainable Forestry Equity Fund. This is reflected in the fund’s classification under Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR), underlining the Munich Re Group’s commitment to sustainability and addressing the increasing demand for sustainable investment solutions among institutional investors. The MEAG Sustainable Forestry Equity Fund is a closed end alternative investment fund established under Luxembourg law as a Reserved Alternative Investment Fund (RAIF).