April 1, 2022
(press release)
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MEAG, on behalf of its clients, has successfully closed a mid-scale acquisition as part of a forestry investment strategy in New Zealand. MEAG’s aim is to be a long-term sustainable player in the New Zealand forest industry. The new asset is located in the Southland region of New Zealand and is perfectly adjacent to an asset acquired in 2021. The asset currently used for grazing shall be planted and thus a significant amount of carbon equivalent is permanently sequestered. This strategy underlines the sustainability ambitions of Munich Re and MEAG and aligns also with the New Zealand government's climate and ESG ambitions. In view of rising uncertainties, MEAG is increasingly focusing on alternative investments that offer attractive risk-adjusted returns in the long term. MEAG has built up extensive in-house expertise in this area, while at the same time leveraging Munich Re's outstanding competence in assessing natural risks and the potential impact of climate change. MEAG started building a global timberland portfolio over ten years ago and has since then invested on all six continents. Besides generating attractive returns, sustainably managed forests have the potential to deliver significant positive ESG impacts at the same time. Holger Kerzel, Managing Director of MEAG, concludes: “By implementing this investment, MEAG not only achieves attractive returns but also makes a contribution to mitigating climate change. At MEAG, climate change and ESG aspects are an integral part of our due diligence process and ongoing management considerations. I am proud that MEAG is able to support the ambitious target of the New Zealand Government to plant one billion trees by 2028 which among others aims at mitigating climate change, increasing biodiversity and building sustainable regional economic growth. The acquired asset, like all MEAG forestry investments, will be certified by independent, internationally recognized schemes”. MEAG manages the assets of Munich Re and ERGO. It has representations in Europe, Asia and North America and offers its extensive know-how to institutional and private customers. MEAG currently manages assets to the value of around €344 billion, around €59 billion of which for institutional and private customers.
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