Generali plays an active role in supporting the transition to a low carbon economy by mitigating the risks of climate change and through promoting greater environmental responsibility.
Climate is a key focal point for Generali. Because of this, on June 30, 2021, we took the opportunity to update our goals relating to how we integrate climate risks and opportunities across the different elements of our business.
Key climate goals include:
- Gradual decarbonisation of the direct investment portfolio to reach carbon neutrality by 2050. This commitment is consistent with the Paris Agreement’s goal to limit global warming to 1.5°C above pre-industrial levels. According to the 2024 intermediate target, Generali will decrease the carbon emissions intensity of the corporate portfolio by 25% in 5 years (corporate bonds, listed equity) and will gradually align the real estate portfolio to a 1.5°C pathway. The reference period for the calculation of these targets will cover year end 2019 to year end 2024.
- € 8.5 - € 9.5 billion in new green and sustainable investments by 2025, with year-end 2020 as the baseline.
- Exclusion of new investments in, and progressive divestment from, coal-related businesses exceeding coal materiality thresholds, as defined in the Technical Note of Generali’s Climate Strategy 2021 update. The ultimate aim is to fully phase out issuers which operate in the thermal coal sector by 2030 in OECD countries and by 2040 in the rest of the world.
- Exclusion of investments in issuers producing unconventional fossil fuels from tar sands.
- Engagement of 20 carbon-intensive investee companies by 2025 in line with ‘Just Transition’ principles.
- Reduction of the already minimal current exposure to the thermal coal sector in order to reach zero exposure by 2030 in OECD countries and by 2038 in the rest of the world.
- Working towards our aim of no longer insuring upstream oil and gas activities.
- Our competence center will continue to research best practices for underwriting the specific risks of renewable energy.
- Ambition to be climate negative in 2040 with the intermediate goal of achieving climate neutrality by 2023.
- A 25% reduction in greenhouse gas emissions of company operations by 2025 against a 2019 baseline.
- Purchase power from 100% renewable sources wherever possible and further commitment to improving energy efficiency.
Encompassing our environmental and social impact goals, we unveiled our Sustainability Bond Framework as a tool for green and sustainability bond issuances.
Sustainability Bond Framework
- Generali was the first major European insurer to issue green bonds and develop a Sustainability Bond Framework, this includes financing and refinancing of Green Assets.
- Through our Sustainability Bond Guidelines, Generali aims to promote integrity in the market for Green, Social and Sustainability Bonds. To do this the use of bond proceeds must align with 10 categories, 6 of which are carried over from our Green Bond Framework, targeting investment opportunities such as renewable energy, energy efficiency, and sustainable water management, among others.