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:
- limit 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 underwriting 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 and by staff business travel;
- demonstrating 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 and updated on the 30th of June 2021, 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. 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, 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
- increased product offering with environmental and social value with GWP CAGR +5%-7% 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 climate neutrality by 2050, in line with the objectives of the Paris Agreement, the Net-Zero Asset Owner Alliance and the Net-Zero Insurance Alliance commitments
- 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 in businesses related to the coal and tar sand sectors and disinvestment of the residual exposure to these sectors with the ultimate aim to fully phase out issuers which operate in the thermal coal sector in OECD countries by 2030 and 2040 in the rest of the world
- reduction of the minimal underwriting of the thermal coal activities in order to reach zero exposure by 2030 in OECD countries and by 2038 in the rest of the world
- forging ahead with the commitment to no longer underwrite upstream oil and gas activities
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 direct operations leading Generali to be climate-negative
- ambition to be climate negative in 2040 with an intermediate target of offsetting our GHG emissions from 2023 onwards
- by year end 2025 a science-based reduction of the greenhouse gas emissions related to offices, data centers, and company car fleet by at least 25% against the 2019 baseline
- purchase power from 100% renewable sources wherever possible and further commitment to improving the energy efficiency
Promote green innovation in our financial management
- issuing of sustainable 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