Responsible Investing is part of our DNA, as Sustainable & Responsible Investing (SRI) is a “must have” for a large insurance group.
Indeed, Generali Group has had a strong SRI conviction in that space since it started applying a Group Ethical Filter* to its investments in 2006:
- Social function of the insurance business
- Preventing & Managing risks are core activities of insurers
- Generating value while preserving capital is key.
For this purpose, we have an in-house Investment Stewardship team dedicated to ESG analyses, Governance & Proxy voting.
By applying our proprietary ESG framework, based on an Ethical filter (exclusions), a “Best in class” ESG approach and Engagement activities with issuers, we wish to:
- Achieve better risk-adjusted returns over time, by identifying the ESG risks associated to specific sectors and issuers
- Engage with issuers, to discuss their ESG risks, opportunities and potential solutions, and to help them improve their ESG footprint over time
- Invest in the issuers showing the best ESG compliance relative to their peers within their sector, based on our ESG criteria and assess their improvements over time (“Best effort”).
Our commitment to Responsible Investment went one step further with:
- The Group’s climate change strategy, announced in 2018, to reduce Greenhouse Gas emissions, support “green” business and redefine our investments in coal-related activities
- The strategic partnership established with Sycomore AM, the reference player in ESG investment solutions in France, to strengthen the focus and capabilities on responsible investments.
*Applying the Group Ethical Filter is part of the discretionary evaluation of the investment manager and the results of such evaluation are confidential.
IN DETAIL, THE STEWARDSHIP TEAM ENSURES:
Integration of ESG (Environmental, Social and Governance) factors into the investment process
Integration of ESG factors when analyzing and selecting companies helps to improve our environment and society as a whole, without any negative impact on financial performance. The team examines companies, identifying risks, issues and opportunities, and rates more than 500 European companies (within the MSCI Europe universe), based on ESG criteria.
Active ownership practices
Active ownership practices include effective proxy voting and engagement activities designed to encourage companies to improve their ESG behaviors, supporting sustainable growth over the long-term and improving their risk/return profiles.
A dedicated Governance & Proxy Voting team manages all activities related to active ownership, including corporate governance analysis, exercise of voting rights, engagement and reporting.
THE GENERALI GROUP’S COMMITMENT
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1) Applying the Group Ethical Filter is part of the discretionary evaluation of the investment manager and the results of such evaluation are confidential.
2) UN Principles for Responsible Investment
3) UN Principles for Sustainable Insurance
4) Task Force on Climate-related Financial Disclosure, promoted by the Financial Stability Board
5) Generali’s “Climate Change” Strategy on:
– Green & Sustainable Investments
– Positioning on coal-related businesses and companies
– Engagement (coal-related businesses in countries heavily dependent on coal)