Generali to move back from coal investments

Decision comes amid significant controversy over insurers' involvement with the sector

Generali to move back from coal investments

Insurance News

By Lyle Adriano

The ongoing saga surrounding insurers’ interests in coal investments continues. Now, Generali’s board of directors has approved a climate change plan that would see the entire company gradually distance itself from the investments.

For the company’s general investment account, Generali has pledged to increase its investments in “green” sectors by €3.5 billion (around SG$5.69 billion) – primarily through green bonds and green infrastructures. The company also said that it would monitor its action plan annually to ensure that it is being properly implemented and to see if the objectives could be further raised.

Generali also said that it will no longer make any new investments in businesses associated with the coal sector, with plans to divest approximately €2 billion from its current coal sector exposure by gradually disposing equity investments and eliminating bond investments.

In terms of its underwriting activities, the insurer also plans to increase the percentage of the premium portfolio related to the renewable energy sector while increasing the offer of underwriting products with environmental value.

Going hand-in-hand with its policy to avoid coal-related investments, Generali stated that it means to keep its minimal insurance exposure to coal-related activities.

Of its stakeholder involvement, the insurer hopes it could engage “issuers, clients, and other stakeholders,” by encouraging constant dialog and monitoring their plans to mitigate environmental impacts, their strategies to transition to activities with lower environmental impact, and their measures to protect their respective communities.

“Protecting the environment and adopting effective actions to tackle climate change are central issues for Assicurazioni Generali,” said Generali Group CEO Philippe Donnet. “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.”


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