Generali approves climate strategy, will divest € 2 billion from coal
Staff Writer |
At a meeting chaired by Gabriele Galateri di Genola, the Assicurazioni Generali board of directors approved the strategy on climate change.
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For many years now, Generali Group has been actively adjusting its business, making it increasingly sustainable, consistent with the commitment of the community in tackling the most significant global challenges, beginning with those related to climate change.
The strategy approved today, which will be followed by specific policies, is in line with the principles of the Global Compact, in which Generali has participated for several years, and with the Paris Pledge for Action defined as part of COP 21, which Generali joined in 2015.
The strategy includes actions in investments and underwriting, which represent the Group's core activities.
With regard to investments, Generali, as asset owner (general account investment), will increase its exposure to green businesses and gradually divest from coal-related companies.
For underwriting, the range of products with environmental value will increase, maintaining a minimum level of exposure in the coal sector.
Investments in “green†sectors will be increased by € 3.5 billion (mainly through green bonds and green infrastructures). Generali will monitor the action plan annually to assess if it is being properly implemented and possibly raising the objectives.
Generali will not make any new investments in businesses associated with the coal sector. With reference to the current exposure to the coal sector, equivalent to approximately € 2 billion, Generali will dispose of equity investments and gradually eliminate bond investments by bringing them to maturity or considering the possibility of divesting them before maturity.
The Group will allow exceptions only in those countries where the production of electrical and heating energies are still dependent on coal, without alternatives in the medium term. These exceptions currently represent a marginal portion of investments (equivalent to 0.02% of the general account).
The percentage of the premium portfolio related to the renewable energy sector will be increased. The offer of products with environmental value (e.g., sustainable mobility and energy efficiency) for the retail market and SMEs will be increased.
Generali’s current exposure to coal-related activities is minimal in relation to total non-Life premiums and primarily refers to countries in which the economy and employment depend heavily on the coal sector. The Group will continue its policy of minimal insurance exposure. ■