Archive ERGO Sustainability Reporting

GRI Balance 2016

Our sustainability programme provides an overview of targets and measures. You can find other information on sustainability at ERGO on these web pages under the category of „Responsibility“.

Organisational profile

  • Dr. Markus Rieß, Chairman of the Board of Management of ERGO Group AG

    Dear Readers,

    Insurance is a long-term business. We insure people and companies for the future. Looking ahead and acting sustainably is an integral part of our activities. We believe that bringing economic, environmental and social interests into harmony will create added value for our Company and for society in general.

    In 2016, we developed our group-wide corporate responsibility strategy further, aligning it with the shared-value approach. This means that we aim, within the framework of our business activities, to interconnect economic growth and social progress in order to meet significant global challenges. In this regard, we are guided by the Sustainable Development Goals, which were adopted by all member states of the United Nations in 2015.

    Climate change presents a particular challenge to our societies and for the insurance industry – the devastating impact of increasingly heavy storms, torrential rains and floodings noticeably affects our society and our business already today. Therefore, our social commitment focuses on supporting the adaptation to climate change and to mitigate its consequences. Together with Munich Re we supply people in affected regions with climate-friendly solar energy and support innovative business ideas for climate protection.

    Within our Group, we have laid a solid foundation for a sustainable, successful future with the ERGO Strategy Programme. Being fit, digital and, thus, successful - that is what we have set ourselves out to do. In order to achieve these objectives, our operations must become leaner and more efficient. Furthermore, we must push ahead with digitalisation. We plan to conclude the extensive restructuring programme by 2021. This is an important prerequisite in order to meet our obligations towards our customers, our employees and society.

    We integrate sustainability into our core business and stand by the voluntary commitments we entered into with our parent company Munich Re. They include the Global Compact of the United Nations, the Principles for Sustainable Insurance (PSI) and the Principles for Responsible Investment (PRI). Within our core business, our experts are assessing newly developed products on the basis of economic, ecological and social aspects and take these into consideration when underwriting risks.

    We invest a large proportion of our assets under management on the basis of sustainability. We expect our external service providers to share our values.

    Sustainable business operations and climate protection are our guiding principles within the Group. For many years, we have been conserving natural resources. In 2015, we achieved our goal of carbon-neutral business operations throughout the Company. We will continue to implement our environmental management in a consistent manner and continuously improve our ecological footprint.

    On these pages, you can read more about our community involvement and how we live up to our corporate responsibility. You will find here the latest Sustainability Reporting based on the generally acknowledged criteria of the Global Reporting Initiative (GRI).

    We welcome you to take a look and look forward to your feedback, constructive criticism and ideas!

    Best regards,
    Markus Rieß

     

    Targets and measures

Organisational profile

  • ERGO Group AG

  • ERGO is one of the major insurance groups in Germany and Europe. The Group is represented in more than 30 countries worldwide and concentrates on the regions of Europe and Asia. ERGO offers a comprehensive spectrum of insurance policies, provisions and services. In its home market of Germany, ERGO is among the market leaders in every line of business.
    We provide life and property-casualty insurance under the ERGO brand. The broadly based portfolio complements the offer of our brands for health (DKV), legal protection (D.A.S.) and travel coverage (ERV). ERGO Direkt is the Competence Centre of the Group for Online Sales.

    Business fields International
    Brands ERGO Germany

  • Düsseldorf (Germany)

  • ERGO is represented in almost all countries of Europe, besides being present in Asia and Canada. The international companies generated 23 percent of premium income in 2016. The Group intends to continue gradually expanding its business in Eastern Europe and Asia.

    ERGO International – Countries

  • The ERGO Group is a joint-stock company (Aktiengesellschaft, AG) under German law. It is a subsidiary of Munich Re, one of the world’s leading reinsurers and risk carriers. The DAX company holds 100 percent of the shares in the ERGO Group.

  • The ERGO Group offers a comprehensive spectrum of insurance policies, provision and services in more than 30 countries and supports both private and corporate customers.

  • Around 44,000 people work as employees or as registered sales agents for the Group. In 2016, ERGO recorded a premium income of 17.2 bn euros and issued insurance benefits to customers amounting to 16.1 bn euros.

    Key employee figures
    Key financial figures

  • At the end of the year under review, the ERGO Group had a workforce of 28,217 (2015: 28,487), including 23,450 in-house staff and 4,767 salaried field staff.

    Employees at the ERGO Group by region, function and type of employment 
    2016 2015 2014
    Total employees1 28,217 28,487 28,020
    Employees by region
    Germany % 58.3 60.4 61.9
    Rest of Europe % 41.1 39.1 37.6
    Other regions % 0.5 0.5 0.5
    Employees by function
    In-house staff 23,450 23,646 23,198
    Salaried field staff 4,767 4,841 4,822
    Self-employed field staff 15,570 15,166 15,321
    Employees by employment type1
    Full-time employees % 73.9 74.7 75.6
    Part-time employees % 21.8 21.5 20.9
    Dormant employment contracts % 4.3 3.8 3.5
    1In-house staff and salaried field staff

    (See G4-LA12 for a summary of employees according to gender)

  • The majority of our employees are employed in Germany and with the exception of senior executives, all employees have pay-scale salaries based on the German collective agreement for the private insurance industry. For our international companies and branches, the local regulations are valid – e.g. the tariff laws in the Netherlands and Austria.

  • We mainly purchase goods, work and services from the following sectors:

    • Travel
    • External Resources (advice, consulting, HR services, qualification, translation, language services)
    • Advertising & Communication (promotional articles, print media, marketing services, media services, web media)
    • Facilities & Real Estate (health and safety)
    • Fleet Management (Leasing)
    • Office Support (office supplies, operating and business equipment)
    • Transport & Logistics (courier and logistics services)

    Our supplier management makes long-term relationships based on partnership a top priority. Sustainability and transparency along the value chain are equally important, together with price and quality. These principles apply to all the business units of our parent company Munich Re. Compliance with the principles of the UN Global Compact and consent to the anti-corruption agreement of ERGO are therefore prerequisites for acceptance as a potential supplier.

  • The ERGO Group renamed itself in 2016 to ERGO Group AG and took on a new company structure.

    In addition to the existing ERGO International AG, two new holdings were founded: ERGO Deutschland AG bundles the traditional German business. ERGO Digital Ventures AG is the third pillar, responsible for all digital and direct activities of the Group including ERGO Direkt insurance.

    Since 2017, due to the growing importance of financial services for cars, ERGO Digital Ventures is also responsible for the new business area “ERGO Mobility Solutions”.

    At the end of 2016, we first became involved in the Thailand market and procured 40 percent of the shares at Thaisri Insurance. In April, the entry to the French market followed with the opening of a branch of property-casualty insurer ERGO Versicherung AG. On 3 June 2016, we expanded our presence in India and increased our share of HDFC ERGO to 48.7 percent.

    ERGO Group Portrait

  • ERGO takes account of the precautionary principle with its risk management in order to take preventive action and avoid or mitigate potential negative impacts, losses or damage for the company and the environment. You will find additional information on the website of Munich Re.

    Annual Report of Munich Re 2016, p. 66ff. (PDF file)

    In June 2017, the first annual reports on solvability and financial situation (SFCR) for the financial year 2016 were published for the operative companies of the ERGO Group. These reports are part of the qualitative (descriptive) reporting that insurance companies must create within the scope of Solvency II.

  • The ERGO Group has obligated itself voluntarily to the following international guidelines:

    • UN Global Compact
    • Principles for Sustainable Insurance (PSI)
    • Principles for Sustainable Investment (PRI)

    In the year under review, we have further developed our Group-wide Corporate Responsibility strategy. The strategy pays into Agenda 2030 and the Sustainable Development Goals affiliated with it which were passed in 2015 by all members of the United Nations.

    In July 2013, the ERGO Group was among the first companies to adopt the “Code of Conduct for selling insurance products” of the German Association for Insurance (GDV). The code applies to all operational German ERGO insurance companies and the sales company ERGO Beratung und Vertrieb AG.
    On 1 March 2013, the German insurance companies of ERGO also signed up to the “Code of Conduct for handling personal Data by the German Insurance Industry” (Data Protection Code of Conduct). This code regulates the collection, processing and use of personal data.
    ERGO is also participating in the initiative of the German insurance industry entitled “Well advised – advanced training for insurance agents in Germany”.

    Code of Conduct for Self-employed Sales Agents (German)
    Data protection

    ERGO is one of the signatories of the “Charta der Vielfalt” (Charter of Diversity): all the signatories make a commitment to creating a working environment that is free of prejudice and exclusion.

    Diversity


  • In 2016, the Group was a member of around 100 sector organisations, associations and networks. A selection is provided below:

    • Arbeitsgemeinschaft für betriebliche Altersversorgung e.V. (ABA) (working community for company pension schemes)
    • “Charta der Vielfalt e.V.” (Charter of Diversity, network)
    • Deutsche Aktuarvereinigung e.V. (DAV) (German actuary association)
    • Deutscher Verein für Versicherungswissenschaft e.V. (German Association for Actuarial Science)
    • Deutscher Kinderschutzbund Ortsverband Köln e.V. (German Child Protection Association, local Cologne branch)
    • UPJ e.V. (German CR-Network)
    • MVO Nederland (Dutch CR-Network)
    • Deutsches Aktieninstitut e.V. (German Equities Institute)
    • Deutsches Institut für Compliance e.V. (German Institute for Compliance)
    • Gesamtverband der Deutschen Versicherungswirtschaft e.V. (German Insurance Association)
    • Industrie-Club e.V. (Industrial Club)
    • Kulturkreis der deutschen Wirtschaft im BDI e.V. (Association of Arts and Culture of the German Economy at the Federation of German Industries e.V.)
    • RKW Rationalisierungs- und Innovationszentrum der Deutschen Wirtschaft e.V. (Cultural group of the German economy in the Rationalisation and Innovation Centre of German Industry)

Identified material aspects and boundaries

  • ERGO Group AG manages the various companies and business lines:

    • Life: ERGO Lebensversicherung AG, Hamburg; ERGO Vorsorge Lebensversicherung AG, Düsseldorf; Victoria Lebensversicherung AG, Düsseldorf
    • Property-casualty including legal protection insurance: ERGO Versicherung AG, Düsseldorf; D.A.S. Rechtsschutz Leistungs-GmbH; various international companies of D.A.S.
    • Health: DKV Deutsche Krankenversicherung AG, Cologne
    • Legal protection: Europäische Reiseversicherung AG (ERV), Munich; various international companies of ERV
    • Direct insurance: ERGO Direkt Lebensversicherung AG, ERGO Direkt Krankenversicherung AG, ERGO Direkt Versicherung AG, Fürth
    • International: ERGO International AG, Düsseldorf; various international companies of ERGO

  • Our business activity is defined by a complex framework and a landscape of emerging potential for new risks and opportunities. It is therefore important that we regularly appraise the issues and focuses associated with our responsibility. In order to live up to our customer promise of “To Insure is to understand”, we strive to understand the expectations and needs of our most important stakeholder groups and identify new developments at an early stage. In spring 2016, we launched a three-stage materiality analysis for this purpose and this simultaneously enabled us to determine the content of our Sustainability Report.

    The first stage involved us in identifying relevant topics that were derived from potential social impacts of ERGO’s business model and requests put forward by stakeholders to our company. We also analysed the following aspects:

    • the G4 Guideline of the Global Reporting Initiative (including the Financial Services Sector Supplement),
    • material challenges identified for Munich Re
    • the content of sustainability ratings and
    • the Principles for Sustainable Insurance.

    We also debated relevant issues arising from the perspective of consumer protection at a workshop held in conjunction with the Consumer Advice Centre North Rhine-Westphalia. This analysis yielded eight relevant issues.

    The eight issues were prioritised in the second stage by carrying out an online survey of our Customer Workshop encompassing nearly 900 customers. “Fair and transparent dealings with customers” was identified as the major issue, followed by “Sustainable investment of capital” and “Basic training and advanced training”. Generally speaking, two thirds of the surveyed customers stated that they believed it was very important for ERGO to take entrepreneurial responsibility.

    In the third stage, internal representatives from specialist areas assessed the value contribution of the issues to the future-proof capability of ERGO. Each was discussed in a workshop in light of the associated opportunities and risks. The materiality matrix that was developed was then validated by the ERGO Sustainability Committee.

    You can see the results of the assessments in the materiality Matrix.

  • The configuration of our materiality topics does not only relate to ERGO internally. It also has impact on external stakeholder groups. The table shown below provides an overview of these issues. We have allocated the relevant GRI aspects to our materiality topics to provide assistance in general orientation. The materiality topics relate to the entire ERGO Group.

    Materiality issues Allocated GRI aspects Affected stakeholder groups
    Fair and transparent dealings with customers Product and service labelling, sales promotion, protection of the customer’s private sphere, compliance, grievance mechanisms for impacts on society Employees, customers, sales partners
    Sustainable investment of capital Investments, active ownership approach Employees, customers, investors, society
    Basic and advanced training Basic and advanced training Employees, customers, sales partners, society
    Diversity and equal opportunities Employment, diversity and equal opportunities, equal remuneration for women and men, gender equality Employees, customers society
    Sustainable products Economic performance, indirect economic impacts, product portfolio, audit, active ownership approach, local communities Employees, customers, sales partners, society
    Raising awareness for sustainability Product and service labelling, investments, product portfolio Employees, customers, sales partners, investors, society
    Community engagement Economic performance, indirect economic impacts, local communities, product and service labelling Employees, customers, society
    Climate and environmental protection within the Company Materials, energy, water, emissions, sewage water and waste Employees, society

  • See G4-19

  • See G4-19

  • In 2016, we adjusted our data collection for donations, social sponsorships and CR-memberships. Expenditure is now reported in accordance to the Munich Re Group-wide CR Themes

    • mitigating the effects of climate change,
    • improving access to healthcare and
    • strengthening risk awareness.

  • For fiscal year 2016, there are no significant changes in the scope and aspect boundaries in our sustainability report.

Stakeholder engagement

  • ERGO values an open and ongoing dialogue with its stakeholders. This allows us to identify at an early stage topics and emerging challenges of relevance to ERGO – both now and in the future – from the perspective of our stakeholders.

    Our stakeholder groups are

    • customers,
    • sales partners,
    • employees,
    • investors
    • and the community at large.

    We are in dialogue with them through a wide range of different channels.

  • See G4-24

  • Our stakeholder groups are customers, sales partners, employees, investors and the community at large. We are in dialogue with them through a wide range of different channels. The main focus lies on our customers. We ask them about the experiences they have had in contacts with our Company to improve our services, processes and products. In Germany, we regularly talk to members of the ERGO Customer Advisory Board and seek the opinions of the participants in the ERGO Customer Workshop on the Internet.

    Ways of including our stakeholder groups are for

    • Customers: sales partners, customer service and customer advisors of the companies, ERGO Customer Advisory Board, ERGO Customer Workshop
    • Employees: dialogue formats, employee surveys, HR departments, employee representatives, ombudsman (external)
    • Shareholders: financial communication, Annual General Meeting
    • Society: Through the responsible departments, we are in constant contact with a large number of industry associations, interest groups and networks and scientific institutions (see G4-16).

  • Our customers
    Continuous communication with our customers is particularly important to us. As a participant in the ERGO Customer Workshop or as a member of the ERGO Customer Advisory Board, they can play a role in influencing the Company with their ideas and their criticism. Alternatively, they can give us their feedback in the online form on our website and by taking part in customer surveys. We also engage with customers and the general public through social media.

    In April 2016 we carried out a dedicated online survey of our ERGO Customer Workshop involving nearly 900 customers – including representatives of the Customer Advisory Board. Customers taking part in the survey stated that the topics “fair and transparent dealings with customers” and “sustainable investment of capital” were top priorities as far as they were concerned (see G4-18). More than two thirds of the customers taking part in the survey believed that it was very important as a matter of principle for ERGO to take entrepreneurial responsibility.

    Employees
    We want to promote the diversity and varied potential of the people in our workforce totalling some 28,000 employees. Ultimately, their expertise and their innovative powers make them key drivers for the success of our business.That is why we engage in continuous exchange with them worldwide and on every level.

    Shareholders
    ERGO belongs to Munich Re. Munich Re is in constant and intensive communication with private investors, institutional investors, analysts and rating agencies. Find out more on the Munich Re website.

    Society
    Through the responsible departments, we are in constant contact with a large number of industry and business associations, interest groups and networks and scientific institutions (see G4-16). Selected memberships are listed here.


Report profile

  • The reporting period is the calendar and financial year 2016. Important events up to 31 May 2017 have been included in the report to reflect current developments.

  • The sustainability report for the year 2015 was published in January 2017.

    ERGO Sustainability Report 2015

  • ERGO has published a sustainability report since 2012. Starting in the reporting year 2014, we have been reporting about our sustainability activities in the form of an extensive GRI Balance Sheet on our website.

  • ERGO Group AG
    Corporate Responsibility
    Sabine Mende
    corporate-responsibility@ergo.de

  • This table is the GRI Content Index in accordance with G4.

  • The report was not verified by an external auditor.

Governance

  • In accordance with the Articles of Association of ERGO Group AG, the Board of Management consists of at least two persons. The Supervisory Board determines the number of members of the Board of Management. The Company is represented by two members of the Board of Management or one member of the Board of Management together with an Authorised Signatory. The Board of Management has six members, one women and five men. The Chairman of the Board of Management is Dr. Markus Rieß.

    The Supervisory Board is the highest monitoring body for corporate governance. It comprises 16 persons, ten men and six women. Since 27 April, 2017, Joachim Wenning holds the position of Chair. He replaced Dr. Nikolaus von Bomhard.

    The Supervisory Board formed five committees (Audit Committee, Standing Committee, Board Committee, Mediation Committee and Nomination Committee).

    ERGO Articles of Association
    Management

Ethics and integrity

  • The Principles for Sustainable Insurance (PSI) and the Principles for Responsible Investment (PRI) signed by Munich Re are binding for the ERGO Group. ERGO has also made a commitment to the ten principles of the UN Global Compact.

    Other internal guidelines also apply to the ERGO Group:

    ERGO makes compliance with the principles of our Code of Conduct a top priority for our employees and sales partners. We follow up all reports of misconduct which we receive from inside or outside the Company. Relevant incidents are individually assessed and sanctions are imposed in accordance with the severity of the infringement of regulations.

    Corporate Governance

Economic Performance

  • We consistently manage our business with a focus on customers, service and earnings. Our management is concentrated on integrated controlling for our lines of business and their administration processes, a modern risk-management system, and value-based and risk-oriented controlling for all business activities. These activities include all forms of life, annuity and health insurance, and virtually all branches of property and casualty insurance, as well as legal protection.

    Our objective is to record, evaluate and diversify all aspects of risks. This empowers us to create sustainable value for our shareholders, customers and employees. Sustainably increasing our corporate value is the guiding principle of our entrepreneurial mindset and action. This also includes our active capital management. We deploy valued-based controlling systems consistently and subject them to a process of continuous development.

    Our guiding principle, “To insure is to understand”, distinguishes us from our competitors. Compliance with this principle means that we are required to focus consistently on the aspirations and needs of our customers. Our objective is to provide needs-based advice and tailor-made products which understand and take account of the personal concerns of our customers. We are in continuous communication with our customers in order to identify these concerns.

    Communication with its stakeholders and their community environment is important for ERGO so that new challenges and changes can be identified at an early stage, and appropriate solutions can be developed. We regard ourselves as part of the community and, wherever possible, our aim is to change it for the better. We create added value for the community as an employer and through our business activity. We also generate value through our many initiatives relating to community involvement.

    Targets and measures

  • In the financial year 2016, total premium income was 17.2 billion euros (2015: 17.9 billion euros) As expected within the scope of the ERGO strategic programme, ERGO made a slight loss in its business result: -40 million euros (2015: -227 million euros).

    Key financial figures
    Munich Re Annual Report 2016

    Our expenditure for community involvement (e.g. donations, social sponsorships, foundations) was around 1.4 million euros.

    Key figures for community involvement

  • Our business as an insurer is impacted by claims due to natural catastrophes caused by the consequences of climate change. As far as ERGO is concerned, climate change is a risk with direct financial impact. At the same time, we also perceive business opportunities in this challenge. We strive to support innovative solutions for climate protection, e.g. with insurance policies for technologies which generate renewable energies. We also contribute to CO2 reduction within our own Company. By 2015, we had achieved our goal of carbon-neutral operations for all our sites worldwide (see also G4-DMA-EN).

  • No financial assistance was received from the public sector in the year under review.

  • ERGO develops insurance policies which are tailored to the financial situation and living circumstances of people living in developing countries. For example, in India the German-Indian joint-venture company HDFC ERGO is offering a wide range of microinsurance policies in rural areas, such as health, accident and fire insurance. Cooperation with local institutions has frequently proven effective in achieving the aim of reaching as many people as possible. These initiatives are often supported by non-governmental organisations and microfinance institutions. ERGO uses these activities to support infrastructure development in regions with restricted access to financial services.

    MEAG is the asset manager of ERGO and Munich Re and invests in global infrastructure projects. These include equity investments in projects such as solar plants and wind farms, as well as shareholdings in a high-voltage grid and a natural-gas grid.

  • As a major employer and provider of work, the ERGO Group exerts a positive impact on business and community development at its locations.

    Indirect positive environmental effects are generated by our insurance tariffs designed to support environmentally conscious customers and environmentally benign technologies. For example, ERGO promotes the growing market of electric cars with particularly favourable tariffs in motor liability and fully comprehensive insurance. Since January 2016, ERGO has also been marketing the Elektro Plus module in motor insurance in order to provide an even better package which meets the insurance requirements for electric and hybrid vehicles. Special insurance solutions support the use of renewable energies. For example, operators of photovoltaic plants can conclude a photovoltaic and reduced-yield insurance agreement with us. This offers protection if the expected annual energy yield for the system is not achieved. At the same time, the policy provides insurance against theft, material failure or damage caused by snow pressure. Our homeowners’ insurance also covers damage caused by fire or storm to photovoltaic, solar and heat-pump systems used for private purposes. In insurance for commercial buildings, environmentally conscious owners can also insure additional costs for planting new plants and for improved energy efficiency. Since September 2014, ERGO has played a pioneering role in insuring residential buildings in areas subject to high risk of flooding in Germany.

Environmental Performance

  • Environmental protection has been an important issue at ERGO for many years. Since 2010, we have had our own Environmental Guidelines. These guidelines acknowledge our responsibility for environmental and climate protection and our active promotion of environmental awareness among our employees.

    Our standardised environmental management system helps us to record, assess and minimise the environmental impact of our business operations systematically and consistently. This collected data forms the basis for steering consumption so that it is as environmentally benign as possible. It also helps us to continuously improve our performance.

    The CO2 footprint of our business activity forms the key indicator for measuring and evaluating environmental performance. We calculate our CO2 emissions annually from energy, paper and water consumption, business trips, and waste in standardised form and in a high standard of quality. This was confirmed in 2016 by Ernst & Young for selected quantitative environmental data in the Munich Re Group (see verification statement by Ernst & Young). At the ERGO Group, there was an additional exemplary verification of the data at the location of ERGO Hestia in Sopot, Poland.

    In 2016, six large German locations and five locations of D.A.S. in the United Kingdom and Ireland were certified in conformity with the international standard ISO 14001. During the year under review, certified environmental management covered 41.6 percent of our employees (2015: 41.9 percent) The slightly lower degree of coverage results from the closure of two ERGO locations in Germany. The systems at our certificated locations are regularly audited by an independent external environmental auditor. Once all the requirements have been complied with, certification is upheld – a continuous process which generates consistent improvement.

    The top priority of the company’s- environmental strategy at ERGO is to keep energy consumption and CO2 emissions as low as possible and to conserve natural resources.

    Since 2015, we have been neutralising unavoidable CO2 emissions of our worldwide business operations through procurement of certificates. We also intend to continuously reduce our CO2 footprint in the future. By 2020, our CO2 emissions are projected to fall by 35 percent (baseline year 2009), through measures including procurement of green electricity.

    We install modern building and plant technology in order to minimise energy consumption at our locations. Every employee has the obligation to help reduce the consumption of resources – including by saving energy, paper and water, and by avoiding waste and business trips. This is why we promote open dialogue and provide regular information and updates about our activities in areas of environmental concern. Our employees are made sensitive to these topics in training sessions (e.g. within the scope of our information days for trainers or introductory events) or specific activities at the respective locations.

    Sustainability Programme
    Responsibility / Environment


  • Because ERGO is a financial services provider, the direct requirement for materials is essentially restricted to consumption in the office setting. In particular, this relates to the paper used. In the year 2016, the absolute amount of printing and copy paper has risen by 4 percent, in comparison to 2015 (674 tonnes).

    Paper consumption1
    2016 2015 2014 
    Total paper consumption t 701 674 727
    Paper consumption per employee t 0.025 0.024 0.027
    1Printer and copy paper

    Explanations for the environmental indicators (standards used and conversion factor) see under our key environmental figures.

  • The key figures collected for recycled materials used at ERGO are restricted to paper. In 2016, recycled paper made up 38.5 percent of the entire paper consumption (2015: 45.7 percent). The reasons for the decline lie, among other things, in the change of supplier for the ERGO Group in Germany. As a counter-measure, since 2016, environmentally friendly products are suggested for each office material order at the ERGO Group in Germany. In the past year, the proportion of environmentally friendly products ordered lay at 19.8 percent of the turnover. By the end of 2018, it shall be increased to 25 percent.

    Recycled Paper consumption1
    2016 20152 2014
    Proportion of total materials used that were recycled t 270 308 415
    Proportion of paper used that was recycled % 38.5 45.7 57.1
    1 Printer and copy paper
    2 Slight deviations from the report for the year 2015 result from data corrections.

    Explanations for the environmental indicators (standards used and conversion factor) see under our key environmental figures.

  • In the financial year 2016, direct energy consumption amounted to 554,785 gigajoules (GJ). This is four percent less than in the previous year (2015: 577,375 GJ). The primary energy source was almost exclusively natural gas.

    Direct energy consumption
    2016 2015 2014
    Direct energy consumption GJ 554,785 577,375 589,443
    Direct energy consumption by primary energy source
    Natural gas1 GJ 188,701 176,323 172,968
    Natural gas consumption for CHPs2 GJ 363,812 398,847 414,429
    Heating oil GJ 0 0 0
    Fuel for emergency Generator GJ 2,094 2,112 1,950
    Solar energy GJ 1783 94 95
    Direct energy consumption per employee GJ 19.66 20.27 21.04
    1 The rise in natural gas consumption results from repair works and subsequent outages at ERGO’s own thermal power stations. This leads to increased natural gas requirements for the heat supply.
    2 Thermal power stations with combined heat and power technology
    3 The rise in consumption of solar energy can be attributed to expansion of the solar plant at DAS UK in Bristol.

    In the financial year 2016, the indirect energy consumption amounted to 517,003 GJ. The consumption of indirect energy per employee increased by 2.2 percent to 18.32 GJ. The most important energy sources are electricity (produced by both conventional and regenerative means) and district heating and cooling.

    Indirect energy consumption
    2016 2015 2014
    Indirect energy consumption GJ 517,003 510,676 508,544
    Indirect energy consumption by primary energy source
    Electricity purchased from outside the country GJ 113,731 108,652 102,185
    Green electricity purchased GJ 164,768 163,899 182,213
    District cooling GJ 25,534 18,985 22,371
    District heating GJ 212,970 219,140 201,775
    Indirect energy consumption per employee GJ 18.32 17.93 18.15

    Explanations for the environmental indicators (standards used and conversion factor) see under our key environmental figures.

  • See G4-EN3

  • In the financial year 2016, we once again succeeded in reducing total (direct and indirect) energy consumption. The specific energy consumption per employee fell to 37.98 gigajoules (GJ). In 2015 this value was 38.2 GJ, and in 2014 it was 39.19 GJ. The consumption of natural gas for our thermal power stations sank due to necessary repair works and outages in connection with these works. This, however, led to increased natural gas requirements for the heat supply and higher electricity consumption.

    In order to reduce our energy consumption sustainably and in the long term, we are implementing various measures. Over the last years, we have,in particular, modernised our building technology. Also in 2016, further energy efficiency measures were implemented at our national and international locations. At all locations, modern LED lighting was installed wherever this made economic sense.

    All drivers of company cars throughout Germany have to participate in an eco¬-driving training course designed to save fuel. In 2016, ERGO trained 96 further drivers. A central contribution to sustainable mobility are our company car regulations which have been valid since 2014 and were updated in 2016 with lower CO2 emissions. This guideline states that CO2 emissions from company cars must be below 150 g / km. We are gradually converting our company fleet to fuel-efficient models. In 2016, the average CO2 emission of the company car fleet in Germany lay at 113 g / km.

    We also provide our employees with an infrastructure for video and web conferencing, thus, creating alternatives to business trips. Wherever possible, we make a contribution to the extension of electro-mobility. At our Cologne location, we installed (in cooperation with RheinEnergie and TankE) two publicly available charging stations in 2016.

    Explanations for the environmental indicators (standards used / conversion factor under environmental indicators.


  • The locations of ERGO withdraw their water from the local (municipal) networks. In 2016, water consumption rose slightly. Total consumption amounted to 450,366 cubic metres (2015: 445,744 m³). Consumption per employee was 15.96 cubic metres (2015: 15.65 m³).

    Water1
      2016 2015 2014
    Water consumption in total 450,366 445,744 446,813
    Water consumption per employee 15.96 15.65 15.95
    1 from the local (municipal) networks

    Explanations for the environmental indicators (standards used and conversion factor) see under our key environmental figures.

  • In 2016, the total greenhouse gas emissions caused by us (Scope 1-3 in accordance with the GHG Protocol) went up slightly to 92,536 tonnes (2015: 92,231 t). This is to be attributed to the adaptation of the emission factors according to GHG Protocol (1/2017). The specific emissions per employee rose, therefore, to 3,279 kilograms (2015: 3,238 kg). This data is based on CO2 equivalents.

    Greenhouse gas emissions
      2016 2015 2014
    Greenhouse gas emissions kg 92,535,9591 92,230,528 92,565,386
    Greenhouse gas emissions by scope
    Scope 12 kg 37,564,782 43,290,371 43,619,594
    Scope 23 kg 46,597,249 38,043,192 39,126,253
    Scope 34 kg 8,373,928 10,896,965 9,819,539
    Greenhouse gas emissions per employee kg 3,279 3,238 3,304

    1 The slight rise in the greenhouse gas emissions can be attributed to a change in the emission factors through adjustments to the country-specific conversion factors for electricity, as well as the adjusted factor for district heating (1/2017).
    2 Includes direct energy and business travel by car.
    3 Includes direct energy
    4 Includes paper, water, waste, business travel by air and rail

    Explanations for the environmental indicators (standards used and conversion factor) see under our key environmental figures.

  • see G4-EN15

  • see G4-EN15

  • see G4-EN15

  • At the end of 2015, ERGO rendered its Group-wide CO2 emissions from business operations CO2 neutral. We compensate for unavoidable CO2 emissions, after deducting green electricity, by purchasing CO2 certificates. In 2016, certificates for 72,000 tonnes of CO2 were purchased. ERGO supported the following projects through the purchase of certificates:

    • Hydropower plant Sahanivotry Hydro, Madagascar
    • Energy-efficient ovens for the Kampala region, Uganda
    • Wind-power plant in Shandong Province, China

    We intend to continually reduce our CO2 footprint in the future. By 2020, our CO2 emissions are targeted to fall by 35 percent (baseline year 2009); measures include the purchase of green electricity.

    The data quality of environmental indicators are continually being improved at our European reporting locations.

  • As a service provider, our business operations do not produce any ozone-depleting substances.

  • Sources of nitrogen oxide (NOx) and sulphur dioxide emissions (SO2) include our thermal power stations with combined heat and power technology, the car fleet, and business travel and commuter journeys taken by employees. We do not collect data on these emissions because they are not of significant importance for ERGO as a financial services provider.

  • Our waste water is discharged sanitary water. The amount almost exactly corresponds to the amount of water withdrawn (see section EN8). We channel all such water into the local drainage system.

  • In 2016, the amount of waste accumulated at the locations, due to renovation and reconstruction measures rose again considerably; per employee, the figure lies at 288 kg (2015: 224 kg). Alone at the location Cologne, for example, around 212 tonnes of demolition material was accumulated for the inner courtyard reconstruction works. Through the dismantling of the UPS plant, 34 tonnes batteries had to be handed over for recycling.
    Waste and recyclable materials are separated, most materials are recycled or recovered and disposed of through regional service providers.

    Waste by type and disposal method
    20161 2015 2014
    Waste t 8,115 6,381 7,1592
    Waste by type and disposal method
    Recycled materials t 4,501 3,525 4,174
    Incinerated waste t 1,970 1,126 1,284
    Incinerated assets
    t 468 703 548
    Specialist waste disposal for reuse / recover t 4 3 4
    Compost t 730 636 684
    Other waste t 442 388 4651+2
    Waste per employee t 0.29 0.22 0.26
    1 Increase in waste resulting from renovation and refurbishment measures
    2 Slight deviations from the report for the year 2015 result from data corrections.

    Explanations for the environmental indicators (standards used and conversion factor) see under our key environmental figures.

Social Performance - Labour practices and decent work practices

  • We are well aware of our responsibility as the employer of around 28,000 people. As far as we are concerned, a sense of responsibility means ensuring that ERGO is future-proof and remains competitive. The objective is to make sales more agile and to provide a more digital structure for the company. Comprehensive structural measures are necessary in order to achieve this goal. These changes will also lead to a painful and unavoidable reduction in the number of jobs. We will make arrangements to ensure that job cuts are made within a framework that is as socially responsible as possible. ERGO is in negotiations with the co-determination bodies with a view to structuring the arrangement.

    We activate the potential of our employees by actively promoting them, giving them scope for getting the work-life balance right between family and the world of work, and safeguarding their health – this is the platform for our success. The members of our workforce benefit from the great diversity of functions in an international group with ambitious targets – and the opportunity to grow. We support the professional development of our employees with individual training programmes and prepare them for new functions.

    Our independent sales partners can take part in comprehensive training packages which focus on service and advisory competence. ERGO takes part in the initiative of the German Insurance Association “Gut beraten – Die Weiterbildung der Versicherungsvermittler in Deutschland” (Well-advised – Advanced training for insurance agents in Germany) in order to constantly maintain the quality and relevance of advanced training for insurance agents at a high level.

    ERGO benefits from the different qualifications, experiences and mindsets of its workforce. We want to be more proactive in promoting this diversity and the potential of our employees. ERGO is one of the signatories of the “Charta der Vielfalt” (Charter of Diversity). All the signatories make a commitment to creating a working environment that is free of prejudice and exclusion. Employees should be respected – irrespective of their gender, nationality, religion, disability, age and sexual orientation or identity. Our Code of Conduct for employees also contains a clear prohibition on discrimination.

    ERGO is committed to integration of people with disabilities into the Company. A dedicated integration team with representatives of disabled people in the Company, the human resources department and the Works Council ensures that their needs are looked after over the long term. This might be by providing appropriate equipment in their workplace or offering the opportunity to work for a trial period.

    The Group in Germany takes part in the initiative “Fair Company” which is dedicated to fair and paid internships and opportunities for university graduates.

    Sustainability Programme

  • In 2016 the employees had worked on average 14 years for the ERGO Group (2015: 13.6 years). The fluctuation rate of in-house employees and salaried field staff in Germany in 2016 was 11.5 percent (2015: 9.8 percent).

    These figures are not categorised according to age and gender, since this data is not of management relevance to ERGO.


  • ERGO has a comprehensive advanced training programme directed towards employees at all levels of hierarchy. In 2016, our in-house employees and salaried field staff in Germany attended training sessions of more than 77,212 participant days (2015: 102,098). The average number of days invested for training of each employee was 4.7 days in 2016 (2015: 5.9 days). In autumn 2016, the new group-wide international Group trainee programme EXPLORE of the Munich Re Group started with placements at ERGO and other business areas.

    Basic and advanced training at the ERGO Group in Germany
    2016 2015 2014
    Number of trainees (including agency trainees) 1,042 1,172 1,127
    Ratio of trainees to working staff % 5.2 5.7 5.4
    Cost of advanced training per employee 743 820 664
    Advanced training days per employee 4.7 5.9 4.3
    Total advanced training days1 77,212 102,0982 72,818
    Advanced training days for sales partners3 32,282 37,7504 39,0524

    Training days in total include in-house and salaried field staff.
    2 The number of the training sessions was higher than in the years 2014 and 2016 due to the introduction of new IT systems.
    3 Training days by employed and self-employed sales agents. Included are those training measures which were centrally implemented by ERGO as well as decentral measures within the scope of a training initiative of the German insurance industry (“Well advised”) and the Code of Conduct for selling insurance products of the German Insurance Association (GDV).
    4 For the years 2014 and 2015, the figures were adjusted (supplemented with the decentrally implemented training measures).

  • We support knowledge acquisition and development for staff appropriate to their career phase through e-learning packages, training sessions on a needs basis and stays abroad. ERGO is particularly keen to recruit and develop the next generation of managers. Our Talent Identification Process (TIP) is directed towards strategic advanced development of our employees based on a systematic analysis of their potential talents. This process involves highlighting attractive development opportunities presented at ERGO for talented employees, high-flyers and managers in the early stages of their careers. ERGO offers comprehensive mentoring programmes for promoting female managers. An experienced manager acts as a mentor for each potential junior manager providing support and encouragement. These tandem partnerships are matched so that the mentees are provided with optimum support in accordance with their skills and future requirements. We also offer our older employees the opportunity to work together with their managers to identify individual working-time arrangements which suit their particular needs during the period in the run-up to retirement.

  • The annual employee interview is an important tool for HR development at ERGO. Supervisors use the meeting to provide their employees with systematic feedback and to agree suitable measures for advanced career training. We expect our managers to offer their employees this kind of performance assessment and development planning every year. We do not collect any participation rates because participating in these annual meetings is voluntary for employees.

  • In 2016, the proportion of female employees was approximately equal to previous years at 57 percent (2015: 56.9 percent). The proportion of women in management positions (based on all management levels) for in-house staff and salaried field staff in Germany increased slightly in comparison to previous years. It now lies at 24.3 percent (2015: 24 percent). The objective is to increase this ratio in Germany to at least 25 percent by the end of 2020. If the international companies are included, the ratio of women in management positions was 33.8 percent at the end of 2016 (2015: 31.1 percent).

    The Management Board of the ERGO Group AG consists of six members: one woman and five men. The Chair is held by Dr. Markus Rieß.
    The Supervisory Board, which is the highest supervisory body in the Group, consists of 16 people: six women and ten men.
    The number of disabled employees among the German in-house staff and salaried field staff increased slightly compared to last year and is now 1,169 (2015: 1,074).


    Employee structure of in-house staff (IHS) and salaried field staff (FS) by age and gender at the ERGO Group
    2016 2015 2014
      IHS FS IHS FS IHS FS
    Proportion of women and men
    Women % 58.8 47.8 59 46.9 59.2 46.4
    Men % 41.2 52.2 41 53.1 40.8 53.6
    Average age Y 43 45.2 42.4 44.9 42 44.6
    Age structure
    Employees under 30 % 14.3 12 15.5 12.5 16.3 13.9
    Employees between 30 and 50 % 61.1 53.7 62.2 54.2 63.6 54.2
    Employees over 50 % 24.6 34.3 22.3 33.3 20.1 31.9
  • The basic salaries for pay-scale employees covered by collective agreements working at German locations are defined on the basis of the relevant contractual regulations (collective agreement for the insurance industry). Since the job evaluation is carried out independently of the holder of the job, the principle applied here is that the same functions receive equal remuneration irrespective of gender.

    In 2015, ERGO carried out an independent salary analysis in Germany with the assistance of the Logib-D tool in order to detect potential differences in salary between men and women. According to the analysis, the salary of men was on average 2.1 percent higher compared with that of women. This result indicates that ERGO is significantly below the average for Germany. Nevertheless, we are working steadily towards continuing to improve the ratio. This indicator is not recorded internationally.


Social Performance - Human rights

  • As a subsidiary of Munich Re, which was one of the signatories of the UN Global Compact, ERGO is committed to upholding human rights. The principles of the Global Compact include a commitment to maintaining, promoting and implementing basic values in relation to human rights, decent working conditions, environmental protection and combatting corruption within our area of influence.

    We expect our service providers also to comply with the principles of the UN Global Compact. Furthermore, we base our approach on the Principles for Responsible Investment (PRI) and the Principles for Sustainable Insurance (PSI). On the basis of the PSI, we have defined our goal as focusing even more effectively in our core business on the environmental, social and economic criteria – also known as ESG criteria (Environment, Social, Governance). These criteria include various aspects relating to human rights, for example the issue of child labour. By signing the PRI, we have also made a commitment to systematically implement ESG criteria in the management of our Investments.

    Sustainability Programme


  • We have a commitment to considering ESG aspects (Environment, Social, Governance), including human rights criteria, in the management of our investments. The Principles for Responsible Investment (PRI) and the General Investment Guidelines of our parent company Munich Re define the group-wide framework for this approach.

  • No cases of discrimination at ERGO in Germany are known to us for the year under review. This indicator is not internationally assessed.

Social Performance - Society

  • Lawful, honest and fair action is crucial to success for ERGO. As a financial services provider, we are largely dependent on trust. In order to avoid damage to our reputation, we have formulated clearly defined rules of conduct for employees and sales partners.

    The Code of Conduct for staff, senior executives and members of the management of ERGO Group AG and its domestic and international subsidiaries provides all our employees with guidelines to help them act ethically and with integrity.

    We have defined the principles for cooperation with sales partners in a Code of Conduct for self-employed field staff.
    ERGO, along with all its German insurance companies and the sales company ERGO Beratung und Vertrieb AG, has adopted the Code of Conduct for sale of insurance products, initiated by the German Insurance Association (GDV). An external auditor verifies the appropriateness and effectiveness of the measures developed and implemented within the framework of the Code.

    ERGO has its own Compliance Management System to ensure compliance with statutory, regulatory and internal rules within the Company. The Compliance Division is under direct responsibility of the Chairman of the Board of Management and monitors compliance with the principles laid down in our Codes of Conduct. Employees of ERGO in Germany can report any breaches anonymously to an external ombudsman who acts as a neutral instance. We are consistent in investigating any indication of misconduct and we apply sanctions that are appropriate to the seriousness of the breach of rules.

    We have further developed our Group-wide corporate responsibility strategy and geared it to the shared-value approach. This means that, as part of our business activity, we want to combine economic and social progress in order to meet major global challenges. According to the 2030 Agenda for Sustainable Development, which was adopted in 2015 by all the member states of the United Nations, such global challenges can only be solved by working together. In order to achieve this, the Sustainable Development Goals were developed which take account of the economic, social and ecological dimensions of sustainability. We let ourselves be guided by these SDGs when developing our new strategy. We thus identified for our Group the following three challenges, which are of particular importance for us as a corporate entity, for our customers and for society at large:

    • mitigating the effects of climate change,
    • improving access to healthcare and
    • enhancing risk awareness.

    Strategy
    Corporate Governance

  • ERGO develops insurance policies which are tailored to the financial situation and living circumstances of people in developing countries and emerging economies. For example in India, the German-Indian joint-venture company HDFC ERGO is offering a wide range of microinsurance policies, such as weather index, health, accident, fire and special insurance for farmers.

    Cooperation with local institutions has frequently been proven effective in reaching as many people as possible. These initiatives are often supported by non-governmental organisations and microfinance institutions.

    HDFC ERGO uses the so-called Common Service Centres (CSC) in rural areas – a kind of citizens’ bureau. Here, the inhabitants of rural areas can conclude insurances in simple fashion, in order to protect themselves from such life risks as illness, accident or loss of harvest due to adverse weather conditions. In all of India there are over 1,250,000 Common Service Centres.

    Microinsurance


  • See answer to FS13.

  • The functions of ERGO Compliance in Germany include systematic risk analysis and ongoing development of our compliance rules, training and advice for employees, and prevention of corruption. Within the scope of prevention of corruption, ERGO Compliance regularly carries out a review to ascertain the business processes where corruption risks could occur. If necessary, ERGO Compliance agrees with the process owners on suitable risk-reduction measures. The ERGO Compliance Unit also defines minimum standards for the international companies, which must be complied with.

    Corporate Governance

  • We train our employees in compliance and prevention of corruption in order to achieve a clear understanding within the company on the actions which comply with the rules and which do not. In 2016, the employees working in sensitive areas were trained.

    We obligate our business partners to comply with the principles of Global Compact and our anti-corruption agreement.

    ERGO Compliance Management System

  • We are not aware of any cases of corruption during the year under review.

  • One of the most frequent reasons for dissatisfaction among customers is their feeling of having being treated unjustly. If this is the case, customers are able to take advantage of our internal complaints management system to provide explanations and dialogue. The unit “Central Complaints Management” manages, coordinates and supports cross-divisional complaint processing and analysis. The objective is to learn how to rectify faults and improve services and processes.

    The ERGO Customer Advocate is part of the portfolio of the Chairman of the Board of Management. This position has an arbitration function within the company, if customers feel they have been unjustly treated and they are not making any progress. The ERGO Customer Advocate and the associated team deal with the concerns of customers in Germany. Their role is to provide clarification on such matters. In 2016, the team dealt with around 80 cases. In three out of four cases, we were able to arrive at a solution in favour of the customer.


Social Performance - Labelling of products and services

  • To insure is to understand: ERGO uses various instruments to fulfil this promise to our customers. We are engaged in an ongoing dialogue with customers along many different channels and we invite them to tell us about their needs and requirements. As participants in the ERGO Customer Workshop or as members of the ERGO Customer Advisory Board in Germany, they have the opportunity to play a role in influencing the Company by putting forward their ideas and constructive criticism. German customers can also use the online form on our website to provide us with feedback. ERGO uses clear language to explain to our customers exactly what they are getting and the company avoids using complicated specialist language. Our dedicated standards guarantee clear, comprehensible language and these have been certified for communication by external experts. We therefore avoid unnecessary jargon, foreign words and Anglicisms. We formulate our texts to ensure they are as short and comprehensible as possible.
    If customers have a claim, we make it our business to provide them with rapid assistance and sustainable solutions. They are invited to publicly rate our products and services on the websites of our German companies.

  • The aim is for our customers to understand us better. The first step towards this goal is to communicate in language that is comprehensible in our letters and in our contractual conditions. This includes some general rules for writing, and internal software for checking documents. Around 13,000 employees are able to use the “Textlab” comprehension software. Our Clear Language Initiative is now part of everyday routine for work at ERGO. The German Inspection Agency TÜV Saarland has carried out a review on establishing comprehensibility throughout the Company in Germany. In February 2016, the agency reassessed the comprehensibility initiative at ERGO. This audit resulted in a further increase in the score to 1.72 (good) (previously 1.90). ERGO is so far the only insurer in the marketplace to undergo this voluntary audit.

  • We are not aware of any cases during the year under review.

  • We work consistently on precisely determining where the satisfaction of our customers lies, because they are the most important controlling parameter as far as we are concerned. In the year under review, we surveyed over 45,000 customers (2015: 57,000), who had had contact with ERGO in Germany shortly before. The feedback they provided gave us information on issues such as the comprehensibility of our letters, the handling of enquiries, the time it actually took to deal with issues, and the desired time. The surveys were carried out by an external market research company. The international companies of the Group have also made a commitment to carry out a customer survey at least once a year.

    We have drawn on the results of the surveys to initiate improvements to processes and in sales. If customers feel that they have been treated unfairly, the internal complaint management system is available to provide explanations and dialogue. If customers feel that their concerns have not been adequately addressed, they can consult the ERGO Customer Advocate and his associated team. In 2016, the team dealt with around 80 cases. In three out of four cases, we were able to arrive at a solution in favour of the customer.

    The ERGO Customer Advisory Board covers the entire spectrum of our customers in Germany. The Customer Advisory Board has 25 members and meets twice a year. The valuable ideas help us to make our processes even more customer-focused and empower us to develop needs-based products and service packages. At the end of April 2017, the ERGO Customer Advisory Board started its third period of office following a further selection procedure (see also G4-FS15).


  • No breaches became known to us during the year under review.
    This indicator has not been recorded for international companies.

  • During the year under review, no complaints about breaches of this nature were made to our knowledge.
    This indicator has not been recorded for international companies.

  • During the year under review, no fines for non-compliance were imposed on the companies in the Group by the supervisory authorities. This indicator has not been recorded for international companies.

Financial sector supplement aspects

  • We observe environmental, social and governance criteria – known as ESG criteria – in order to establish sustainability systematically in our business. The Principles for Sustainable Insurance (PSI) are the platform for embedding these criteria in our core business.

    At ERGO in Germany, we are incorporating sensitive issues in standard contracts (tariff business, for example in private customer business) and in individual business (conditions negotiated on an individual basis, for example in business with major customers and Group business). A joint CR committee of Munich Re and ERGO regularly provides all the relevant organisational units with an updated list of sensitive issues. The underwriting guidelines are reviewed in the light of these issues and revised as necessary.

    A specially developed ESG audit list provides support for employees in evaluating risks to be insured. Since 2015, ESG criteria have been checked systematically when developing new products or when modifying existing products in tariff business.

    Responsible design and fair sale of insurance products is a top priority at ERGO. When we sell our products, a consistently high level of high-quality advice is a top priority in line with our claim “To insure is to understand". Our sales partners in Germany operate on the basis of a standardised advice tool known as the “ERGO Kompass” (ERGO Compass), which focuses on the customers’ current life situation. This enables them to survey customer needs selectively and offer concrete proposals for tailor-made protection.

    We have laid down the principles for cooperation with our sales partners in Germany within a Code of Conduct for self-employed sales agents. This defines the key principles of cooperation and understanding of fair dealings with customers, and goes beyond the requirements for ethical conduct. ERGO has also joined the Code of Conduct for selling insurance drawn up by the German Insurance Association (GDV). An external auditor assesses the appropriateness and effectiveness of the measures developed and implemented under the Code.

    We are also committed to consider ESG aspects in the management of our investments. The Principles for Responsible Investment (PRI) and the General Investment Guidelines of our parent company Munich Re define the group-wide framework for this approach. Structured into asset classes, this defines specific criteria for the investment, including the sustainability of the investments.

    Our standardised environmental management system helps us to record, assess and minimise the environmental impact of our business operations, products and services systematically and consistently.
    In 2016, six major German locations and five locations of DAS in the United Kingdom and Ireland were certified in conformity with the international standard ISO 14001. The systems at our certificated locations are regularly audited by an independent external environmental auditor. Once all the requirements have been complied with, certification is upheld – a continuous process which generates consistent improvement.

    In addition, ERGO uses internal communication channels such as Intranet and the staff magazine to regularly inform employees about current sustainability issues and projects. We also use a variety of events to communicate to employees our interpretation of sustainability at ERGO. The regular environmental audits of the individual departments carried out within the framework of environmental management also continuously raise the awareness of employees for the environmental and social requirements in our business areas. We also raise the awareness of our employees at the local sites in working groups, through our internal media and by means of campaigns.

  • Total premium income1 business fields
      2016 2015 Change previous year (%)
    Life Germany € million 3,735 4,016 -7
    Health € million 4,727 4,752 -0.5
    Property-casualty Germany € million 3,194 3,162 1
    Direct insurance € million 1,094 1,104 -0.9
    Travel insurance
    € million 452 449 0.5
    International € million 4,032 4,382 -8
    Total € million 17,235 17,867 -3.5
    1 fully consolidated figures
  • On behalf of the Indian government, HDFC ERGO General Insurance Company (HDFC ERGO), in which ERGO now has a 49 percent stake, was the first private insurance company to launch a weather-based crop insurance scheme (WBCIS) for failed harvests on the market in 2010. The background to this is that around 80 percent of harvest failures in India are due to the weather, whereas less than one quarter of Indian farmers are insured. The structure of the product is simple and flat-rate payments are made if a specified temperature or level of precipitation is exceeded or not achieved. Gross premiums amounting to the equivalent of around 40 million euros were written and 2 million farmers were insured during the course of 2016.

  • Our insurance products include an environmental benefit if they support environmentally benign and innovative technologies. For example, ERGO promotes the growing market of electric cars with particularly favourable tariffs in motor liability and in fully comprehensive insurance. Since January 2016, ERGO has also been marketing the Elektro Plus module in motor insurance in order to provide an even better package meeting the insurance requirements for electric and hybrid vehicles. Special insurance solutions support the use of renewable energies. Our residential buildings insurance also covers claims caused by insured hazards to photovoltaic, solar and heat-pump systems used for private purposes. Operators of photovoltaic plants are able to conclude a photovoltaic and reduced-yield insurance with us (see also G4-EC8).

  • See G4-DMA

  • MEAG is the asset manager of ERGO and Munich Re. It is in regular communication with individual companies to help them improve their sustainability performance. The close contact between MEAG and the management of many companies is also used to address environmental problems within the framework of our systematic risk analysis. However, MEAG does not record concrete figures on the scope of these meetings in a standardised way.

  • We have made a commitment to observe environmental, social and economic criteria in the management of our investments. We therefore define appropriate guidelines for our asset manager MEAG so that investments are always compliant with our sustainability requirements. The Principles for Responsible Investment (PRI) and the General Investment Guidelines of our parent company define the framework for this. Concrete investment criteria are defined in these guidelines in accordance with asset classes, including guidelines on sustainability.

    ERGO invests more than half of the premiums received from customers in companies which take account of economic, ethical, social and environmental criteria. We invest in shares and corporate bonds which are listed in sustainability indexes. We carry out regular assessments for sustainability and the indexes used include the following ones:

    • Dow Jones Sustainability World Group Index,
    • FTSE4Good,
    • Ethibel Sustainability Index.

    Sustainability ratings drawn up by the agencies oekom research AG and Systainalytics are also used. We also monitor government bonds for sustainability. This is based on the internal sustainability country rating of Munich Re, which is in turn based on the Country Risk Monitor of the rating agency Sustainalytics.