Climate Transition risk in Fixed Income Insurance Investment

In breve

Investment White Paper - The GIAM’s view on how to tackle climate Transition risk in Fixed Income Insurance Investment


  • For insurance portfolios, for reducing the carbon footprint given the limited turnover possibilities, we adopt a gradial asset rotation approach, exiting from poor ESG-rated assets gradually while pushing for change in activist approach via our engagement activities. From an insurance investment standpoint, the expectations in terms of transition risk will most probably result in heightened pressure on prices of high carbon footprint assets. This may therefore redesign the sectoral repartition of the economy, impairing carbon-intensive businesses while boosting the greenest ones. Looking at the EIOPA study between a run-off approach or a reallocation one, we conclude that starting to reduce transition risk is warranted as it has limited economic implications and will gradually imply regulatory benefits. 
  • We expect Central Banks to intensify pressure on poor ESG-rated corporates over the coming months increasing de facto the ESG premium. Climate change is not yet part of the mandate of major central banks, but the implied medium-term threat to price stability is leading them to start tackling this risk. We take a closer look at the implications expected from the climate strategy of the European Central Bank, in particular the greening of corporate bond purchases and banking regulations. 
  • GIAM has a very strong commitment to tackle climate risk within portfolios and a unique multidimensional inhouse approach. GIAM has committed to achieving the Paris Agreement goals by cutting the Group’s greenhouse gas (GHG) emissions attributable to (direct) investments in corporate bonds and equities by -25% from 2019 to 2025. We explain our approach to reaching this goal, going from a prudent exclusion policy, to a strong engagement activity and a detailed methodology to decarbonise portfolio. 

Read the White Paper below

White Paper I Climate transition risk in insurance investments

© Generali Investments, tutti i diritti riservati. Questo sito web è fornito da Generali Investments ed è considerato come una comunicazione di marketing e una promozione finanziaria riferita ai prodotti e servizi delle società elencate di seguito, appartenenti al Gruppo Generali: Generali Asset Management S.p.A. Società di gestione del risparmio & Generali Investments Luxembourg S.A. (nel prosieguo, congiuntamente indicate come Generali Investments). Inoltre, il sito può contenere comunicazioni di marketing e promozioni finanziarie di prodotti e servizi di società appartenenti alla piattaforma coordinata da Generali Asset Management S.p.A. Società di gestione del risparmio, nello specifico di Infranity, Sycomore Asset Management, Aperture Investors LLC., Plenisfer Investments SGR, Lumyna Investments, Sosteneo Infrastructure Partners SGR e Generali Real Estate S.p.A. Società di Gestione del Risparmio