The Italian Group Generali has announced its plans to increase its exposure to green businesses and to gradually divest from coal-related companies as part of its recently approved strategy on climate change.
The new strategy, which will be followed by specific policies, is in line with the Global Compact’s principles – in which Generali has participated for several years – and with the Paris Pledge for Action defined as part of COP 21, joined by the Italian Group in 2015.
Generali investments in green sectors will increase by €3.5bn, – mainly through green bonds and green infrastructures – while it will monitor annually the action plan in order to assess whether it is being properly implemented.
As for coal-related activities, the company said it will not make any new investments associated with them and will divest gradually its current exposure to this business (equivalent to approximately €2bn). However, Generali stated it would allow certain exceptions only for those countries where the production of electrical and heating energies still depends on coal, without alternatives in the medium term.
For premiums related to non-life products, Generali committed to increase the percentage of its premium portfolio related to the renewable energy sector as well as the offer of products with environmental value (sustainable mobility and energy efficiency) for the retail market and SMEs.
In countries where the economy and employment depend heavily on the coal sector, Generali will involve issuers, clients, and other stakeholders, monitoring their plans to reduce environmental impacts.
Group CEO Philippe Donnet stated: “Protecting the environment and adopting effective actions to tackle climate change are central issues for Assicurazioni Generali. With this action plan, which follows a series of initiatives undertaken in the last several years, the Company strengthens its leadership position as a responsible business, to contribute to a healthy, resilient, and sustainable society.”