The Generali Group’s investment management policy has always privileged
solid and
reliable issuers, rejecting mere speculation and carefully avoiding all high-risk investments,
including those posing environmental or social risk. As the Group recognises the
importance of greater transparency in its investment criteria and clear recognition
of the integration of ethical principles in the investment strategy it pursues,
in 2006 the Group decided to apply the ethical guidelines adopted by
Norwegian Government Pension Fund – Global to investing.
Norwegian Government Pension Fund - Global was chosen primarily because it shares
the same objectives as the Generali Group to generate high long-term financial
income. Moreover, the
ethical guidelines adopted by the Fund for its investments are in line with the sustainability
concept inherent in the Group’s investments.
The Fund has also established an Ethical Committee of experts - providing advice
to the Ministry of Finance, which is responsible for Fund management - as part
of a
procedure for exclusion of issuing companies from investment.
In adopting this investment policy, the Group not only aims to avoid the risk
of contributing indirectly to serious acts against humanity and/or the environment,
but - as an institutional investor - it pursues the goal of inducing responsible
behaviour under a socio-environmental profile among issuing companies.
The above-mentioned ethical guidelines apply to all direct investments in portfolios where the investment risk is borne by the Group, thus applying
to both the investments of the Group own assets and resources upholding the Group’s
commitment to policyholders.
For those investments in portfolio that fall short of the above-mentioned criteria
- especially following the exclusion of new companies - a period of time is established
for liquidating the positions after a public announcement of the exclusion by
Norway Minister of Finance. This period must grant sufficient time to leave any
investments without causing negative repercussions on the relevant portfolios.
With a view to monitoring the extent to which ethical investment guidelines are
adhered to in the various countries, a quarterly report is submitted to the Financial
Risk Control Department within the Corporate Centre. If a violation occurs, a
verification and sharing process is implemented with regard to disinvestment plans
to immediately restore compliance with guidelines. There were no violations in
2009. In addition, continuous centralised monitoring takes place to immediately
identify violations and implement corrective action in regard to new exclusions
from the fund’s investment scope. A pre-emptive check prevents the purchase of
shares from excluded issuing companies.
In the Group investment portfolio, non-ethical investments amount to about 6.5
millions of euros at the end of 2009.
