Sustainability Report 2015
Legal framework
Hannover Re's Group Legal department continuously assesses requirements arising out of the applicable legal framework and monitors them with an eye to any relevant current developments. In the year under review we identified only one significant change in the legal framework conditions relating to ecological or social aspects.
Conduct of energy audits
By means of the Act on Partial Implementation of the European Energy Directive dated 15 April 2015 the Federal Republic of Germany enacted into law the mandatory conduct of regular energy audits at large enterprises. Under the legislation, large enterprises that have a turnover of more than EUR 50 million and employ more than 250 staff are now required to conduct an energy audit for the first time by no later than 5 December 2015 and every four years thereafter. An exemption from the obligation to carry out an energy audit is available solely for companies that have an energy management system in accordance with DIN EN ISO 50001 or for those that have successfully implemented a validated environmental management system as defined by the directive, known specifically as EMAS (Eco-Management and Audit Scheme), or have concrete plans to do so by the stipulated deadline. With this in mind Hannover Re decided in the year under review to convert its existing environmental management system according to DIN EN ISO 14001 to the more comprehensive environmental management system EMAS in 2016 and going forward to publish an annual environmental EMAS statement in the EMAS register.
Tax framework
As a globally operating reinsurance undertaking, Hannover Re is subject to the changing tax laws of the respective legal systems. We pay the incurred taxes according to the applicable legal provisions.
The tax expenditure of Hannover Re in the financial year was EUR 150.6 million higher than in the previous year at EUR 456.2 million (EUR 305.6 million). This increase is largely attributable to the sharp rise in pre-tax profits compared to the previous year. In addition, the raising of the trade tax multiplier for the City of Hannover led to an increase in deferred taxes. The effective taxrate amounts to 27.3% (22.3%).
In order to ensure that going forward, as in the past, tax returns can continue to be complete and filed on a timely basis, Hannover Re is currently working on implementation of a "Tax Compliance System". In this regard it is necessary to identify all relevant task areas and responsibilities, set out clear rules for them in a company-wide guideline and translate them into practice in the context of processes. The task areas in question are not exclusively those handled by the Taxation Department. Overall responsibility for dealing with tax matters rests with the Chief Financial Officer of Hannover Re.