The construction of the Belo Monte dam in the Amazon region of Brazil has come under heavy criticism because of the impact the dam may have on the environment and local residents. Experts anticipate that it will have adverse effects on the Amazon rainforest, particularly on species diversity, and hence also on the livelihoods of the indigenous inhabitants. Due to its involvement in this project, Munich Re has been excluded from the Global Challenges Index (GCX). By agreeing to provide cover for the construction phase of the project, the reinsurer violated the GCX’s strict environmental regulations.

The UK retailer J Sainsbury has taken Munich Re’s place in the index. The retailer’s impressive credentials include a good system for ensuring compliance with social standards in the supply chain. It promotes the sale of products which meet particular social or environmental requirements, such as fair trade products, and has implemented comprehensive measures to improve transport efficiency and thereby cut CO2 emissions. Another company promoted to the index is the US food producer Hain Celestial. The company generates the bulk of its turnover from the production and sale of organic foodstuffs. Hain Celestial replaces the US technology company Energy Conversion Devices, which no longer meets the GCX’s market capitalisation requirements.