Financial companies from Germany are readjusting their sustainability policies amid the US government's anti-climate action activities. Reinsurance company Munich RE announced its departure from the pro-climate action industry groups Net-Zero Asset Owner Alliance, Net-Zero Asset Managers Initiative, Climate Action 100+ and Institutional Investors Group on Climate Change, the Süddeutsche Zeitung reported. The world's largest reinsurer has for years been at the forefront of financial institutions warning against the dangers of global warming for its own business model as well as for society in general, and was one of the first to take part in many industry initiatives to better anchor sustainability in the finance industry. “We observe an increasing uncertainty regarding the assessment of private initiatives under the legal and regulatory conditions of different legal systems,” the company said about its reasons for leaving the sustainable finance groups, according to the article. Munich RE further said that climate reporting rules for international companies had become too complex and an administrative burden. The company insisted it would continue to contribute “independently” to climate action, which remained an “urgent priority”.

At the same time, asset manager DWS, a subsidiary of Deutsche Bank, is reviewing its policy for applying ESG (environmental, social, governance) criteria for sustainable finance in a bid to comply with pressure by the US government under president Donald Trump, business daily Handelsblatt reported. In a script for the company's shareholder meeting seen by Handelsblatt, DWS head Stefan Hoops said that the “conditions regarding regional regulatory differences and with respect to customer preferences have changed”. This specifically included climate and regulatory policies of the US government, which would affect many of the companies invested in by DWS, the script read. DWS would therefore “once again continue to develop” its sustainability strategy. DWS sustainability manager Stefan Junglen told Handelsblatt that “climate-related products and engagement” remained “relevant aspects” for the company, but that customers were free to choose to what extent sustainability criteria played a role in their portfolios. The company had previously been fined in Germany and in the US for misleading customers by exaggerating the sustainability aspects of its financial products.

The moves by Munich RE and DWS follow several US finance companies reviewing their own policies in the wake of Trump's election victory, including asset managers like Blackrock or Vanguard. In late 2024, a Republican-led committee in the US probed dozens of asset management companies over their involvement in the Net Zero Asset Managers Initiative, which it accused of being a “woke” ESG cartel. The initiative paused its operations in January. In 2023, several insurance companies left the Net Zero Insurance Alliance after attorneys in a number of US states said members of the initiative are violating cartel law. Most finance companies that have been members of sustainability initiatives claim their engagement not only helps international efforts to curb climate change, but also ensures their businesses adapt to challenges of the future and remain competitive.