Generali Upgrades Its Climate Protection Strategy

The Group’s new climate change strategy has been shared with the Board of Directors of Assicurazioni Generali, chaired by Gabriele Galateri di Genola.

The strategy, which upgrades and expands the existing Group plan approved in February 2018, introduces significant measures related to investment activities and the assumption of insurance risks, the core businesses of the Group, advocating for a low-impact climate future.

– Generali Group today announces new ambitious goals for its climate strategy in line with its commitment and beliefs in this specific area, relying on already achieved results. Specifically, €6 billion in new green and sustainable investments made in the last three years has allowed us to exceed our pre-established goals ahead of schedule. We believe that the private sector can play a key role in financially supporting a „just transition" for a future with net-zero greenhouse gas emissions by assisting public institutions in taking necessary actions – stated Generali Group CEO Philippe Donnet.

DIRECT INVESTMENTS

New goals include:

• €8.5 to €9.5 billion in new green and sustainable investments for the period from 2021 to 2025. This is in line with the previous goal of €4.5 billion for the period from 2019 to 2021, which was exceeded a year early, amounting to €6 billion at the end of 2020;
• Increasingly restrictive exclusion criteria for the coal sector with the aim of a gradual, but complete cessation of investments in these activities. The goal of the new strategy is to completely eliminate suppliers operating in the thermal coal sector in OECD countries by 2030, and by 2040 in the rest of the world;
• Gradual decarbonization of the portfolio of direct investments to achieve carbon neutrality by 2050. This is in line with the Paris Agreement goal to limit global warming to 1.5 °C above pre-industrial levels and with the commitment made under the Net-Zero Asset Owner Alliance. As a medium-term goal for 2025, Generali will reduce carbon emissions for the corporate portfolio (corporate bonds, listed equity) by 25% and align the real estate portfolio on the path towards the 1.5 °C target.

ASSUMPTION OF INSURANCE RISKS

New goals include:

• Reduction of the minimum current exposure to the thermal coal sector to achieve zero exposure by 2030 in OECD countries and by 2038 in the rest of the world;.
• Continuation of the commitment to no longer insure upstream oil and gas activities. This includes a commitment to no longer assume insurance risks related to the exploration and production of fossil fuels from tar sands, shale (oil and gas) deposits, or extracted in the Arctic zone, on land and at sea.

STAKEHOLDER ENGAGEMENT AND ADVOCACY FOR A "JUST TRANSITION"

New goals include:

• Commitment to engaging stakeholders in creating a future with net-zero emissions and supporting a just transition. For this reason, Generali will include at least 20 investors who are heavily invested in carbon in the Group’s investment portfolio by 2025 to drive real-world impact.

DECARBONIZATION OF GROUP OPERATIONS TO MAKE GENERALI CLIMATE NEGATIVE

New goals include:

• Ambition for Generali to be climate negative by 2040 with a medium-term goal of achieving climate neutrality by 2023;
• By 2025, a science-based reduction of greenhouse gas emissions related to offices, data centers, and the company’s fleet by at least 25% compared to the 2019 baseline;
• Purchasing energy from 100% renewable sources wherever possible and further commitment to investing in energy efficiency.