This strategy will also see the firm gradually divest its holdings in coal-related companies, and increase its underwriting products that have an environmental value.
Generali said it will not make any new investments in businesses associated with the coal sector.
The group currently has €2bn of coal exposure and will dispose of these coal equity investments and gradually eliminate bond holdings by bringing them to maturity or considering the possibility of divesting them before maturity.
The group noted that it would allow coal investment exceptions in countries where the production of electrical and heating energies are still dependent on coal, without any alternatives in the medium term. However, these exceptions currently represent 0.02% of the firm’s general account.
On underwriting products, Generali said the percentage of its premium portfolio related to the renewable energy sector would be increased. The firm’s is to offer more “green” insurance products to cover products with environmental value such as sustainable mobility and energy efficiency.
General Group’s chief executive, Philippe Donnet, said: “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,” Donnet said.
Generali noted that its criteria to define coal-related businesses was:
- Companies for which more than 30% of revenues derive from coal;
- Companies for which more than 30% of energy produced derives from coal;
- Mining companies that produce more than 20 million tonnes per year of coal; and
- Companies actively involved in building new coal facilities or plants.