Investing for the climate
The COP21 in Paris outlined the need for the active involvement of the private sector, and the financial industry in particular, to limit the increase of the global temperature and accelerate the transition towards alternative energies to fossil fuels.
In fact, to meet the 2030 European goals for the transition towards a low-emission economy, the European Commission estimates that additional investments of €180 billion a year are required. Public funding will therefore have to be supplemented with private-sector investments to guarantee all of the necessary economic resources.
The Generali Group has responded to this call to action by adopting a strategy based on these priorities:
- Financing the transition towards a sustainable and low-emission society
we have set ourselves the goal of increasing the Group's green and sustainable investments by an additional €4.5 billion by 2021 above the investments already in portfolio in 2018
- Reducing the carbon footprint of our investment portfolio
we are committed to making our general account investments portfolio climate-neutral by 2050, we have already disposed equity investments and we are gradually eliminating bond investments in the coal and tar sands and we will make no new investments in these sectors
- Dialogue and involvement of stakeholders in the “Just transition”
We integrate the actions related to investment and underwriting activities with a process of dialogue and engagement of key stakeholders such as policy makers, non-governmental organisations and companies to strengthen the commitment to the "just" transition that combines decarbonisation strategies with social protection measures, so that no one is "left behind".
In particular, in countries strongly dependent on coal, where the Group is present as a primary investor and/or insurer, we actively involve the management of listed companies in the coal industry to support their commitment to the transition to low emission activities and to the simultaneous adoption of programmes to protect workers and local communities.
We are also developing models to regularly measure the carbon footprint of our financial assets and their alignment with the goals of the Paris Agreement, including in the analysis government bonds, corporate bonds, equities and real estate investments, in order to shape the definition of intermediate goals to reduce the greenhouse gas emissions associated with our investment portfolios and make them climate neutral by 2050.
We are also developing in-depth methodologies to measure the physical and transition risks deriving from climate change that underpin our investments.
Finally, we also make an active contribution to various working groups to promote green finance:
- Net Zero Asset Owner Alliance, an initiative launched in September 2019 by the United Nations, which brings together institutional investors committed to making their investment portfolios climate neutral by 2050, in accordance with the commitments of the Paris Agreement.
- Climate Action 100+ a coalition of global investors launched during the COP21 to coordinate engagement and shareholder activism activities in the 100 listed companies with the highest greenhouse gas emissions in the world, so that they take measures to rapidly decarbonise their activities.
- Investor Leadership Network, a collaborative platform involving the most important global investors set up as part of the G7 Investor Global Initiatives, with which we promote the analysis and communication of the financial impacts related to climate change.
- Italian National Dialogue on Sustainable Development, sponsored by UNEP and the Italian Ministry of the Environment for the definition of climate change mitigation and adaptation, leveraging on the potential of the financial sector.