Commitments to the environment and climate
We want to play an active role in supporting the transition towards a more sustainable economy and society. On this front, through our Group Policy for the Environment and Climate, we have adopted clear principles guiding our choices:
- limiting global warming and development of climate change adaptation strategies;
- reduction in the consumption of natural resources;
- pollution prevention and protection of biodiversity.
We put these principles into practice by monitoring and reducing our direct impacts, linked to 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 underwriting and investment strategies;
- strengthening public awareness of environmental and climate risks by promoting dialogue between stakeholders;
- reduction of environmental impacts generated by the Group's offices and by staff business travel;
- transparency regarding our policies and reporting on the results achieved.
The Generali Group Strategy on Climate Change, approved by Assicurazioni Generali's Board of Directors on the 21st of February 2018, 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 low-emission economy. For further information refer to the climate change strategy press release.
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.
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 €4.5 billion by 2021
- increased product offering with environmental value for the retail market and small and medium enterprises
- establishment of a competence center for the protection of risks inherent to the renewable energy sector
Decarbonize the investments’ and clients’ portfolios
- progressive decarbonization of the general account investment portfolio in order to reach climate neutrality by 2050, in line with the objectives of the Paris Agreement
- exclusion of new investments in businesses related to the coal and tar sand sectors and disinvestment of the residual exposure to these sectors
- commitment not to increase the minimal insurance exposure to coal-related activities
- exclusion of insurance coverage for assets of new customers in the coal industry and for the construction of mines or coal-fired power plants, continuation of the commitment not to underwrite customers in the tar sands sector
Stakeholders’ engagement for the ‘Just Transition’
- in countries where the economy and employment depend heavily on the coal sector, develop engagement activities and constant dialogue with issuers, customers and other stakeholders in order to facilitate the transition to low-emission activities and the adoption of protective measures for workers and the community
- Transparency regarding the progress of the engagement activities and the implementation of the climate strategy through the Generali Group's Annual Integrated Reports and public reporting
In our key areas of action, we are also delivering on:
Reduce the emissions resulting from our operations
- stable and structural reduction by 2020 of the greenhouse gas emissions related to the management of our offices and business travel by at least 20% compared to the base year 2013
- increased purchases of electricity generated from renewable sources
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
- definition 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