Green financial management
The careful assessment of the climate-related impacts on the Group's activities is now fully embedded in the Group's most strategic processes, also including those connected with the financial management. Generali has displayed a great deal of innovation in this area.
In 2019 we issued a €750 million green bond to finance or refinance, for example, acquisition and refurbishment projects of the Group's real estate assets leading to energy optimisation. We collected final orders of over €2.7 billion, equal to around 3.6 times the offering. In 2020 the Group showed consistency with its sustainability strategy by issuing a second green bond for €600 million. Also in this case the response from investors has been very strong with final orders of over €4.5 billion.
In 2021 Generali issued €500 million Tier 2 bond, in the new form of a “sustainability bond” under the Sustainability Bond Framework, which embeds our previous Green Bond Framework.
This new format confirmed Generali’s leading position on sustainability matters. The issue attracted an order book of € 2.2 billion. The net of proceeds from the issue will be used to finance/refinance Eligible Sustainability Projects, according to both green and social eligible criteria defined in the new Framework.
In 2021 Generali sponsored Lion III Re catastrophe risk bond, the first ever Insurance Linked Security (ILS) issuance embedding innovative green features in compliance with the Generali Green ILS Framework, which allows for the transfer of insurance risk to institutional investors. In line with its principles: (i) Generali's freed-up capital resulting from the Lion III Re transaction will be allocated to green projects, (ii) the collateral is invested into highly rated green notes issued by the European Bank for Reconstruction and Development (EBRD), (iii) a dedicated reporting of the allocation of freed-up capital to eligible projects as well as EBRD reporting on its Green Projects Portfolio will be provided. In addition, the primary service providers engaged have shown commitment to a sustainability framework in their business activities.
For more details on our Green Insurance Linked Securities Framework you can read: