Commitments to the environment and climate
We want to support the transition to a more sustainable economy and society and we therefore adopted clear principles to guide our decisions to:
- mitigate global warming and develop climate change adaptation strategies;
- reduce the consumption of natural resources and promote circular economy;
- protect and restore biodiversity, prevent pollution.
We put these principles into practice by monitoring and reducing the impact of the Group's operational activities, and indirect impacts related to our products, services and investments. We also collaborate with governments and associations to promote the development of system solutions.
In particular, we have identified the following areas of intervention, for which we have established specific indicators and targets to be achieved:
- integration of environmental and climate aspects into insurance and investment strategies;
- strengthening public awareness of environmental and climate risks by promoting dialogue between stakeholders;
- reducing environmental impacts generated by the Group's offices, data centers and the staff mobility ;
- demonstrating transparency regarding our policies and reporting on the results achieved.
The Generali Group Strategy on Climate Change, approved by the Board of Directors on the 21st of February 2018 and updated in June 2022, is a key reference point for the Group: it provides an overview of the decisions taken to promote a fair and socially just transition to a net-zero emission economy.
Following this resolution, we have defined measures detailing how the strategy is to be implemented in the core business activities of the Group. These management solutions are reviewed and updated periodically to verify their relevance and ensure their effectiveness. They are described in the technical note available below, together with the Climate-related Financial Disclosure, which describes the results achieved to date.
In order to manage the risks and opportunities related to climate change and the green transition, we are implementing the following Strategy:
Promote the development of the green economy
- new green and sustainable investments amounting to €8.5-9.5 billion in the period 2021-2025
- increase the offer of products with ESG component with a goal of +5%-7% of GWP CAGR in the period 2022-2024
- development of our competence center for the protection of risks inherent to the renewable energy sector
Decarbonize the investments’ and clients’ portfolios
- progressive decarbonization of the investment and insurance portfolio in order to reach net-zero emissions by 2050, in line with the objectives of the Paris Agreement, the Net-Zero Asset Owner Alliance and the Net-Zero Insurance Alliance
- in the period 2019-2024, reduction of the carbon footprint of the corporate portfolio (corporate bonds, listed equity) by 25% and alignment of the 30% of the real estate portfolio to a decarbonization pathway consistent with limiting global warming to 1.5°C
- exclusion of new investments and gradual divestment from coal-related companies. Exclusion of new investments and progressive divestment from companies active in the exploration and production of unconventional fossil fuels: tar sands, oil and gas extracted through fracking and upstream operations in the Arctic
- exclusion of new underwriting cover and gradual discontinuation of the existing cover for clients insured for activities strictly related to the coal industry. Forging ahead with the commitment to no longer insure clients operating in upstream oil and gas, both conventional and unconventional
- phase-out of investments and underwriting activity in the coal sector by 2030 for OECD countries and by 2040 for the rest of the world
Engage with stakeholders to promote the ‘Just Transition’
- commitment to engage with stakeholders in building a net-zero future and supporting the 'Just Transition'. To this end, by 2025 the Group will engage with at least 20 carbon intensive companies in the Group's investment portfolio to drive real world impact
- transparency regarding the progress of the engagement activities and the implementation of the climate strategy through the Generali public reporting
In our key areas of action, we are also delivering on:
Decarbonization of our operations
- by the end of 2025, in line with climate science, reduction of greenhouse gas emissions generated by Group operations (offices, data centers and mobility) by 35% compared to base year 2019. This target has been relaunched in March 2023 in relation to the previous -25% set in June 2021.
- purchasing energy from 100% renewable sources whenever possible and further commitment to improving energy efficiency
- ambition to reach net-zero GHG emissions by 2040 and subsequently to become climate negative
Promote green innovation in our financial management
- issuing of green bonds to finance or refinance green projects such as improving the energy efficiency of the Group's real estate assets
- development of a framework for issuing Green Insurance Linked Securities, characterized by the investment of the collateral in assets with positive environmental impact and the allocation of the transferred capital to green initiatives