Responsible investment products
To meet growing demand from clients and the international market, for several years we have also offered investment products that meet SRI (Socially Responsible Investment) criteria.
We have developed a proprietary approach to selecting socially responsible investments, involving for each company:
- the analysis of 34 social, environmental and governance (ESG) criteria, reviewed and updated annually and each assigned a score;
- the mapping of non-financial risks that may impact the company share price (for example, reputational risk and damage to brand image, class actions, legislative pressure, competitive advantage, intangible assets and carbon footprint) and the way these issues are addressed by company policies;
- the comparison of previous analysis results with the benchmark SRI universe, comprising more than 200 European companies, leading to the selection of the most ethical businesses according to a "best effort" rule;
- integration of financial aspects for the final selection of the companies identified.
A team of five expert analysts, assisted by a technical committee, then selects shares from leading companies on corporate social responsibility and sustainable development, where necessary also engaging with the companies under consideration to improve their performance.
This approach has led to the creation of an internal database known as the Sustainability Analysis of Responsible Assets (SARA), enabling us to set up a number of dedicated funds, including the Luxembourg-based Generali Investments SICAV SARA SRI fund and the GIS European SRI Equity fund. In September 2013, the latter investment fund was awarded the prestigious Novethic SRI Label, which Novethic – the leading French SRI research group – uses to reward the systematic application of ESG criteria in the investment process, its impact on the available selection of share-issuing companies and the quality of the resulting portfolio.
In 2015, Generali Investments Europe launched GIS Ageing Population, an SRI fund planned and developed as an answer to the trend of ageing population and greater longevity, combining financial return and ability to create value for the community.
Currently, the method for selecting socially responsible investments is applied to 28.6 billion euro of assets under management.