Responsible investment portfolios
For several years we have also applied SRI (Sustainable and Responsible Investment) criteria for a selected investment portfolio of the Group (as asset owner) and for investment products offered to the market (as asset manager).
As asset owner: 33,837 mln euro (as of December 2020)
Thanks to an ESG methodology, which integrates non-financial and traditional financial aspects, developed internally by the dedicated teams of Generali Insurance Asset Management, we select the best companies in terms of their corporate social responsibility and sustainable development policies, to establish dedicated SRI investment mandates.
We have developed a proprietary approach to selecting socially responsible investments, involving for each company:
- the analysis of 34 social, environmental and governance (ESG) criteria, reviewed and updated annually and each assigned a score;
- the mapping of non-financial risks that may impact the company share price (for example, reputational risk and damage to brand image, class actions, legislative pressure, competitive advantage, intangible assets and carbon footprint) and the way these issues are addressed by company policies;
- the comparison of previous analysis results with the benchmark SRI universe, comprising more than 200 European companies, leading to the selection of the most ethical businesses according to a "best effort" rule;
- integration of financial aspects for the final selection of the companies identified.
The approach consists in selecting shares from leading companies in corporate social responsibility and sustainable development. All companies analysed periodically receive the findings of our analysis, with the aim to discuss and highlight areas for improvement.
This approach has led to the creation of an internal database known as the Sustainability Analysis of Responsible Assets (SARA).
As asset manager: 7,671 mln euro (as of December 2020)
We are boosting ESG integration not only in terms of our investments, but also in the range of ESG investment products offered to the market. In 2019, we acquired Sycomore, an asset manager specialized in ESG funds, strengthening our commitment to include ESG criteria in portfolio management. Sycomore offers a wide range of funds, including SRI certified funds, funds that integrate ESG factor and funds with specific themes related to sustainability macro-trends.