Investment portfolio decarbonisation

According to its Climate Change Strategy, in 2020 the Group joined the United Nation-convened Net-Zero Asset Owner Alliance (NZAOA) and committed to reduce the net greenhouse gas emissions of its portfolios to zero by 2050, in order to limit the global temperature rise to 1.5°C

In order to do so, we set two intermediate targets for the decarbonisation of the portfolio by 2024 that reflect our continuous commitment to the achievement of the long-term goal:

  • 25% reduction compared to 2019 in the carbon footprint of direct investments in listed equities and corporate bonds, also through dialogue with 20 carbon-intensive investees in our portfolio;
  • alignment of at least 30% of the real estate portfolio with the global warming trajectory of 1.5°C.

As a result of the commitments made in this area, the Group is gradually integrating the carbon footprint in its investment and active shareholding (voting and engagement) choices.

The carbon footprint of a portfolio can be measured by using several metrics with different calculation methodologies.

Perimeter and metrics

31/12/2019 31/12/2020 31/12/2021 31/12/2022

2019-2021 change

Direct investments in listed equity and corporate bonds (€ bln)

117.5 111.5 110.4 91 -22%

Absolute emissions (mln tCO2e)

15.4 12 10.4 6.8 -55.9%

Carbon intensity (EVIC) (tCO2e/€ mln invested)

182 145 128 100 -45.1%

Carbon intensity (sales) tCO2e/€ mln of sales)

277 243 241 188 -32.1%


71% 74% 73% 75% 14 p.p.
Direct investments in listed equities and corporate bonds

The metric we selected to monitor the implementation of its target is the Carbon Intensity (per EVIC).  
The carbon intensity (EVIC) decreased by 45.1% between year-end 2019 and year-end 2022, moving from 182 tCO2e/€ mln invested to 100 tCO2e/€ mln invested.
The reduction of the carbon footprint over the last years is mainly due to:

  • an investment allocation that favoured the most virtuous companies in the energy transition and reduced at the same time the exposure to high carbon-intensive companies and activity sectors; 
  • a decrease in the companies' GHG emissions, also due to the Covid-19 pandemic effects on the global economy starting from 2020, which led to a drop in the activity of some sectors.

Despite the positive results achieved so far, we envisage certain challenges we will face and strictly monitor in the next years: the decrease in GHG emissions linked to the pandemic experienced as of year-end 2022 is largely due to an extraordinary event, meaning that the post-Covid-19 recovery would lead to an increase in the companies’ GHG emissions, offsetting the previous years’ pandemic-induced decline. The war in Ukraine generated an energy crisis in 2022 for European utilities, which had to rely more on coal for electricity generation (to replace Russian gas), leading to a potential increase in the GHG emissions.

We have committed to develop a strategy to decarbonize our assets by 2050, which envisages the gradual alignment of our real estate portfolio with the targets defined by the CRREM (Carbon Risk Real Estate Monitor) model.

This long-term commitment is supported by the intermediate target of aligning at least 30% of the real estate portfolio with the global warming trajectory of 1.5°C by 2024.

At the end of 2022, more than 30% of the portfolio is in line with the CRREM decarbonisation pathway, allowing us to be well positioned in relation to the achievement of the target. 
The objective of aligning the total portfolio with the 1.5°C trajectory is an ambitious long-term plan that requires to understand the peculiarities of each building and to define an improvement plan. Within this scope, since 2022 an energetic efficiency plan for the individual properties was defined also through the use of techniques of data analytics, with the aim of identifying the possible improvement actions and potential costs for the alignment of these properties with the decarbonisation target set for 2050 and with the Group's sustainability ambitions. This energetic efficiency plan currently consists of € 24 billion and is annually presented and updated on the basis of the collected and estimated data. The suggested actions, which consider the main ways to reduce emissions and increase energy efficiency, range from renovations (light or heavy) to system upgrades, making changes to the energy mix and involving the tenants.

For further information refer to Generali Real Estate website