German reinsurance giant Munich Re has announced that it will not insure the East African Crude Oil Pipeline (EACOP) project.
In a press release, Munich Re said that it had set out decarbonisation targets in 2020, for its liabilities, investments and operations.
The reinsurance giant is also a member of the United Nations’ Net Zero Asset Owner Alliance, as well as a co-founder of the Net Zero Insurance Alliance.
Furthermore, beyond the emissions targets, Munich Re also said it had “rigorous ESG assessments” for large-scale projects.
Munich Re stated that it would not provide “direct, facultative and primary” cover for EACOP, and that it had instructed its underwriting community of this a year ago.
Munich Re said: “Our existing frameworks underline our commitment to decarbonize accompanied by respecting high business ethics.”
This comes shortly after environmental activists from the campaign #STOPEACOP called for Munich Re and Lloyds to follow other global re/insurers by not providing insurance for the project.
On the campaigns website it states that French oil giant, Total, and the China National Offshore Oil Corporation are on the cusp of building a massive crude oil pipeline through the heart of Africa, which will displace communities, as well as endanger wildlife, and tip the world closer to full-blown climate catastrophe.
Munich Re now joins Hannover Re, Swiss Re, Axa, Zurich ,and SCOR in publicly committing that they will not underwrite the pipeline.