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
GENERALI JOINS UNITED NATIONS-CONVENED NET-ZERO ASSET OWNER ALLIANCE
Generali joins the United Nations-convened Net-Zero Asset Owner Alliance, the group of 18 pension funds and insurers committed to decarbonize their portfolios to net-zero emissions by 2050 to avoid a global temperature increase above the 1.5°C Paris target
As a signatory of the UN Global Compact and the United Nations’ PRI (Principles for Responsible Investment), the Generali Group discloses its activities in an annual Sustainability Report – available online – and is committed to honoring said principles.
Generali Group joined the Principles for Sustainable Insurance (PSI), an initiative promoted by the Environment Programme’s Finance Initiative (UNEP FI) of the United Nations in 2014.
The Generali Group became a signatory of the Climate Risk Statement of The Geneva Association in Kyoto in 2009 and in Toronto in 2014, assuming a series of shared commitments on the measures to be adopted to address and mitigate climate change.
In 2018, Generali Group became a signatory of the TCFD Supporters (Task Force on Climate-related Financial Disclosure), promoted by the Financial Stability Board. The FSB Task Force will develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders
The Group also supports the project “Investing in a Just Transition”, promoted by The Grantham Research Institute/London School of Economics and the Harvard University in partnership with PRI (Principles for Responsible Investments). The aim of this initiative is to support a ‘just’ transition towards a low-carbon economy, integrating the social dimension into the climate strategy.
As member of the European Financial Services Round Table (EFR) , the Generali Group endorsed a statement in support of a strong and ambitious response to Climate Change, which was sent to European Governments, the European Commission and other public officials ahead of the 21st Conference of the Parties (COP21).
Following the COP21, at the end of 2015, Generali has joined the Paris Pledge for Action, an initiative that represents a unique opportunity for non-state actors to welcome the Paris Agreement on climate change and commit to implement it.
Generali Group is an advocate of the United Nations’ Sustainable Development Goals . These goals, also known as “Global Goals,” are a universal call-to-action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity. The United Nations Development Program provides support to governments, helping them integrate SDGs into their national development plans and policies.
Generali Investments is a member of the International Corporate Governance Network (ICGN) whose mission is to promote effective standards of corporate governance and investor stewardship to advance efficient markets and sustainable economies worldwide. Generali Investments strongly believes in its active role in enhancing Corporate Governance standards through proxy voting and engagement activities. In 2017, it endorsed the ICGN Global Stewardship Principles and committed to uphold its corporate governance standards.
Generali Investments participates in the European Forum for Sustainable Finance (EUROSIF), as well as the French (FIR), Italian (FFS) and Spanish (SIF) working groups that unite the most important European realities in socially responsible investment.
As signatory of the Carbon Disclosure Project , the Generali Group chose to participate in Italy’s national dialogue on sustainable development, sponsored by the UNEP and the Italian Environmental Ministry. This dialogue was organized following COP21 in Paris (December 2015), which outlined the need for the private sector to become actively involved in helping societies around the world respect global climate change commitments.
Generali Investments also adheres to Italy’s stewardship principles for the exercise of administrative and voting rights in listed companies, as defined by Assogestioni , the Italian association of asset managers.
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