Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — ESG Presentation (2023)
56 slides from Assicurazioni Generali's sustainability presentation, 2023
Slide 1: ESG Investor Presentation 2023
ESG INVESTOR PRESENTATION 2023
Slide 2: Summary
SUMMARY 01. INTRODUCTION TO OUR BUSINESS 02. OUR SUSTAINABILITY FRAMEW ORK AND FOUNDATIONS 03. OUR STRATEGIC TARGETS & KEY TRENDS, W ITH A FOCUS ON CLIMATE PLAN 04. SUSTAINABLE FINANCIAL MANAGEMENT 05. ANNEX
Slide 3: Introduction to Our Business
INTRODUCTION TO OUR BUSINESS
Slide 4: Generali's Business Activities at a Glance
4 GENERALI’S BUSINESS ACTIVITIES AT A GLANCE Generali is a major player in the global insurance industry – with a focus on Life and Health Insurance solutions, as well as significant Property and Casualty Business lines. Generali’s insurance solutions are underpinned by our activities as an asset ma
Slide 5: Our Ambition
5 Sustainability Ambition OUR AMBITION Being the originator of the new strategy means that Sustainability is a game changer, shaping the way all decisions are taken. This will lead Generali to be a transformative, generative and impact driven company, able to create shared-value.
Slide 6: Our Journey Towards Long Term Value Creation
6 OUR JOURNEY TOWARDS LONG TERM VALUE CREATION OUR PURPOSE: SHARED “Enable people to shape a safer and more sustainable VALUE CREATION future by caring for their lives and dreams” Early Stage 2004 2005 2007 2011 2013 2014 2017 2019 2020 2021 2022 Establishment First Participant of Joined the First J
Slide 7: Our Sustainability Framework and Foundations
OUR SUSTAINABILITY FRAMEWORK AND FOUNDATIONS
Slide 8: Our Sustainability Framework
8 OUR SUSTAINABILITY FRAMEWORK External Context Stakeholder Expectations Sustainability Ambition Purpose Values Behaviours Sustainability Strategy Responsible Responsible Responsible Responsible Investor Insurer Employer Citizen Materiality Assessment € Climate Change Strategy Net-Zero ambition Sust
Slide 9: Our Governance: Board of Directors, Committees and GMC
9 Sustainability Foundations OUR GOVERNANCE: BOARD OF DIRECTORS, COMMITTEES AND GMC Innovation and Sustainability Committee SHAREHOLDERS Chair: Umberto Malesci, Independent – 41 y.o. MEETING BOARD OF STATUTORY AUDITORS It is appointed by the Shareholders’ Meeting and INDEPENDENT It expresses – throu
Slide 10: Integrated Governance Driving Sustainability at All Organisational Levels
10 Sustainability Foundations INTEGRATED GOVERNANCE DRIVING SUSTAINABILITY AT ALL ORGANISATIONAL LEVELS BODIES KEY CHARACTERISTICS ▪ 77% independent Board members ▪ 54% have relevant ESG experience BOARD OF DIRECTORS ▪ 46% female representation ▪ 59 years average age BOARD ▪ Independent Chair ▪ 95%
Slide 11: Our Policies and Guidelines
11 Sustainability Foundations OUR POLICIES AND GUIDELINES We have policies and guidelines that ensure the alignment with the principles of Sustainability and their actual integration into the core business. Sustainability Investment Product Oversight Life UW and Group Policy Governance Group Governa
Slide 12: Sustainability Is Integrated into Remuneration
12 Sustainability Foundations SUSTAINABILITY IS INTEGRATED INTO REMUNERATION Since 2018 we have progressively linked remuneration to key sustainability metrics, starting with Top Management STI, including ESG metrics in the LTI since 2021, and most recently integrating sustainability into the employ
Slide 13: Disclosure and Transparency
13 Sustainability Foundations DISCLOSURE AND TRANSPARENCY Sustainability information and KPIs are provided through a ‘core’ and ‘more’ approach. The Annual Integrated Report provides the ‘core’ information, where yearly performance is assessed and presented to our stakeholders. CORE Financial and Su
Slide 14: Our Strategic Targets & Key Trends, with a Focus on Climate Plan
OUR STRATEGIC TARGETS & KEY TRENDS, WITH A FOCUS ON CLIMATE PLAN
Slide 15: Our 2022-2024 Strategic Goals on Sustainability
15 OUR 2022-2024 STRATEGIC GOALS ON SUSTAINABILITY Focus on climate RESPONSIBLE • Full ESG integration1 by 2024 Reduce exposure to coal and INVESTOR unconventional oil and gas issuers • Net-Zero investment portfolio by 2050, with an interim goal of 25%2 carbon footprint reduction, by 2024 Wind down
Slide 16: Steady Progress on Commitment to Sustainability
16 Sustainability Strategy STEADY PROGRESS ON COMMITMENT TO SUSTAINABILITY¹ CARBON INTENSITY OF INVESTMENTS PREMIUMS FROM INSURANCE IN CORPORATE ISSUERS (EVIC)3 FENICE 190 (2020-2022) SOLUTIONS WITH ESG COMPONENTS2 100 tCO2e/€ m -45.1% vs 2019 € 2,080m € 19,868m +11.7% Supporting SMEs’ sustainable t
Slide 17: Generali's Key Sustainability Data Trends
17 Sustainability Strategy GENERALI’S KEY SUSTAINABILITY DATA TRENDS¹ Products with ESG Components2 € bn Relationship Net Promoter Score Sustainable Financial Management € m 18 Target: Maintain Nat Cat Bond Green & Sustainability Bond +11.7% leadership vs 14 Target: European peers +5-7% CAGR 2022-20
Slide 18: Sustainability Commitments Throughout Our Business Value Chain
18 Sustainability Strategy SUSTAINABILITY COMMITMENTS THROUGHOUT OUR BUSINESS VALUE CHAIN Group strategic targets REGULATORY FRAMEWORK MATERIALITY ASSESSMENT (e.g., SFDR, TAXONOMY, CSRD) MARKET TRENDS (formerly knowns as materiality matrix) INPUTS GROUP STRATEGY AND GROUP AMBITION STAKEHOLDERS’ EXPE
Slide 19: Responsible Investor
RESPONSIBLE INVESTOR aon. GENERALI
Slide 20: Sustainable Investments Framework for Managing Sustainability Factors
20 Responsible € Investor SUSTAINABLE INVESTMENTS FRAMEWORK FOR MANAGING SUSTAINABILITY FACTORS + Focus in following slides ESG APPROACHES INVESTMENT PORTFOLIOS AVOID INTEGRATE INFLUENCE NEGATIVE INVESTMENT WITH POSITIVE ACTIVE OWNERSHIP1 SUSTAINABLE SCREENING SCREENING (ENGAGEMENT AND VOTING) CHARA
Slide 21: Avoid: Negative Screening in Direct Investments
21 Responsible € AVOID: NEGATIVE SCREENING IN DIRECT Investor INVESTMENTS The Group excludes issuers with poor ESG practices, representing higher sustainability and reputational risks, from its investments 1) Controversies – corporate and sovereign issuers 2) ESG Laggards – corporate and sovereign i
Slide 22: Integrate: Investments with Sustainable Characteristics
22 Responsible € INTEGRATE: INVESTMENTS WITH SUSTAINABLE Investor CHARACTERISTICS The Group promotes, across different asset classes, investments with sustainability characteristics capable of creating long-term value not only for investors but also for society as a whole Green and sustainable inves
Slide 23: Investments Portfolio Decarbonisation: Net-Zero GHG Emissions by 2050
23 Responsible € INVESTMENTS PORTFOLIO DECARBONISATION: Investor NET-ZERO GHG EMISSIONS BY 2050 The Group has committed¹ reaching net-zero GHG emissions for its investments by 2050, to limit global temperature rise to 1.5°. The long-term commitment will be reached through the definition of mid-term
Slide 24: Responsible Insurer
RESPONSIBLE INSURER aon. GENERALI
Slide 25: Responsible Underwriting Framework for Managing Sustainability Factors
25 Responsible Insurer RESPONSIBLE UNDERWRITING FRAMEWORK FOR MANAGING SUSTAINABILITY FACTORS + Focus in following slides ESG APPROACHES AVOID INTEGRATE INFLUENCE NEGATIVE INSURANCE SOLUTIONS WITH ESG COMPONENTS ACTIVE OWNERSHIP1 P&C PORTFOLIO SCREENING EXISTING PRODUCTS NEW SOLUTIONS (ENGAGEMENT AN
Slide 26: Negative Screening: P&C Underwriting Exclusion Criteria
26 Responsible Insurer NEGATIVE SCREENING: P&C UNDERWRITING EXCLUSION CRITERIA The Group excludes from its insurance portfolio risk coverages for key sectors Key Sectors Sensitive Sectors i) Thermal Coal ii) Oil and gas sector Prudent underwriting All companies ▪ Coal Share of revenues > 20% Upstrea
Slide 27: Integrate: Insurance Solutions with ESG Components
27 Responsible Insurer INTEGRATE: INSURANCE SOLUTIONS WITH ESG COMPONENTS THE RESPONSIBLE CONSUMER ECOSYSTEM Environmental sphere Insurance Solutions with ESG components1 Social sphere 0.4% 0.4% 11.4% Pollution 68.0% €19.9 billion (+11.7%²) Circular liability /Own Products Products Economy damages a
Slide 28: Supporting European Enterprise
28 Responsible Insurer SUPPORTING EUROPEAN ENTERPRISE SME EnterPRIZE to foster the sustainability transition among SMEs Importance for Generali Our Ambition In line with the Generali 22-24 Group Strategy, through the SME EnterPRIZE Develop an ecosystem to promote a culture of Sustainability among pr
Slide 29: Lifetime Partner 24 & Digital Assets
29 Responsible Insurer LIFETIME PARTNER 24 & DIGITAL ASSETS 2022 2022-24 €1.1 billion C U M U L A T I V E I N V E S T M E N T S I N D I G I T A L & T E C H N O L O G Y New Relationship Model - shared customer and data ownership to drive Value Relationship Net Promoter Score OUR CUSTOMERS +1.4% 18 Ef
Slide 30: Responsible Employer
RESPONSIBLE EMPLOYER aon. GENERALI
Slide 31: Our People Strategy
31 Responsible Employer OUR PEOPLE STRATEGY OUR PEOPLE WOMEN MEN 82,061 + 10.0% 50.5% -0.9 p.p 49.5% +0.9 p.p Enhance a Lifetime Partner, sustainable and KEY HIGHLIGHTS meritocratic culture 2022 Engagement Rate Build a more diverse work environment ensuring 84% (+1 vs 2021, +1 vs equal opportunities
Slide 32: Diversity, Equity & Inclusion
32 Responsible Employer DIVERSITY, EQUITY & INCLUSION Targets 40% WOMEN IN 2022 2022-24 STRATEGIC POSITIONS1 ZEROING EQUAL PAY GAP WOMEN IN STRATEGIC POSITIONS1 2022 Highlights 30% Diversity – new editions for the Lioness Acceleration Program and Elevate program targeting women managers EQUAL PAY GA
Slide 33: Decarbonization of Generali's Own Operations
33 Responsible Employer DECARBONIZATION OF GENERALI’S OWN OPERATIONS Responsible The Group is decarbonizing its own operations in line with climate-science. The specific target has been Employer strengthened and approved by the Board of Directors in March 2023, and it accounts for a -35% GHG emissio
Slide 34: Responsible Citizen
RESPONSIBLE CITIZEN aon. GENERALI
Slide 35: The Human Safety Net: Generali's Initiative for the Community
35 Responsible Citizen THE HUMAN SAFETY NET: GENERALI’S INITIATIVE FOR THE COMMUNITY Its mission is to unlock the potential of people living in vulnerable circumstances, so that they can transform the lives of their families and communities. It focuses on two programmes: For Families For Refugees Su
Slide 36: Sustainable Financial Management
SUSTAINABLE FINANCIAL MANAGEMENT
Slide 37: Sustainable Financial Management
37 SUSTAINABLE FINANCIAL MANAGEMENT 2019 2020 2021 2022 2023 1st Green Bond (sector 1st) 2nd Green Bond - €750 million issuance - €600 million issuance Green Bond - 3,436 tCO2e avoided - 28,514 tCO2e avoided Framework 4th Green Bond 1st Sustainability Bond - €500 million issuance - €500 million issu
Slide 38: Generali Sustainability Bond Framework
38 GENERALI SUSTAINABILITY BOND FRAMEWORK Building upon our Green Bond Framework, the Green and Social Bond Principles and the Sustainability Bond Guidelines, in 2021 we launched an umbrella framework that will allow Generali to issue 3 types of bonds: Green, Social & Sustainable bonds Proceeds from
Slide 39: The Green Insurance Linked Securities Framework
39 THE GREEN INSURANCE LINKED SECURITIES FRAMEWORK MAIN FEATURES ILLUSTRATIVE TRANSACTION STRUCTURE GREEN ANGLES Green ILS structure is based on 2 green elements: ▪ Integrating sustainability principles into alternative mechanisms for the Premium Interests + Spread, & notional at due date transfer o
Slide 40: ESG Features in the Revolving Credit Facilities
40 ESG FEATURES IN THE REVOLVING CREDIT FACILITIES Green & Sustainable RCF negotiated with international banks Amount &YEAR AMOUNT& Year Duration DURATION Global Coordinator Linked to Green and Sustainable Eur 2 bn, 2021 3+1+1+ years Unicredit New green and sustainable bond investments according to
Slide 41: Annex
ANNEX aon. GENERALI
Slide 42: Generali Approach to Climate Change Risk
42 GENERALI APPROACH TO CLIMATE CHANGE RISK STRONG GOVERNANCE Risk Management Climate Change Strategy updates Group Policy delivered to the Board of Directors Sustainability Committee Cross-function & business unit leads the Strategy Climate Strategy Task Force ▪ Group wide assessments on the impact
Slide 43: Climate Change Framework Overview
43 CLIMATE CHANGE FRAMEWORK OVERVIEW Climate change is integrated into Generali’s broader Risk Management process as well as specific risk projects including identification of sustainability risks as part of the Main Risk Self Assessment (MRSA), and our Strategy on Climate Change Governance: Strateg
Slide 44: Climate Change Risk Management – Outside In
44 CLIMATE CHANGE RISK MANAGEMENT – OUTSIDE IN The impact of climate change risks on the Group’s investment portfolio and P&C underwriting portfolio is assessed through the Clim@Risk NFGS1 Climate Scenarios used to assess climate risks methodology that captures the Group’s exposure across different
Slide 45: Board Members: Skill Matrix
45 BOARD MEMBERS: SKILL MATRIX Competencies Experiences Financial and Insurance Regulatory Business Digital IT Managerial Corporate Audit & Risk ESG & accounting and financial framework and model and Legal and Cyber Internationalism and/or Institutional Consultancy Academic governance management Sus
Slide 46: Focus on the Board of Directors
46 FOCUS ON THE BOARD OF DIRECTORS Andrea Sironi Phillppe Donnet Marina Brogi Umberto Antonella Mei- Chairman Managing Director and Director Group CEO Malesci Pochtler Director Director Age: 58 Age: 55 Age: 62 Age: 41 Age: 64 In office since: 28/02/2022* In office since: 29/04/2022 02/05/2022** In o
Slide 47: Materiality Assessment
47 MATERIALITY ASSESSMENT The current Materiality Matrix was approved by the Board of Directors in November 2020, and is currently in the process of being updated. It identifies the ESG megatrends that are relevant for Generali according to its stakeholders. Link with the priorities of the global ag
Slide 48: European Taxonomy Disclosures
48 EUROPEAN TAXONOMY DISCLOSURES Under the EU Taxonomy Regulation, the Generali Group is required to provide: • EU Taxonomy eligibility indicators in its 2021 and 2022 annual reports • EU Taxonomy alignment indicators in its annual reports starting from 2023 2022 Underwriting Activities 2022 Investm
Slide 49: Insurance Solutions with ESG Components – Environmental Sphere
49 INSURANCE SOLUTIONS WITH ESG COMPONENTS – ENVIRONMENTAL SPHERE Promote responsible behaviour with positive impact on the environment and reduce environmental impact Mobility • Products for Green vehicles (electric and hybrid vehicles): • Products rewarding environmentally-friendly driving behavio
Slide 50: Insurance Solutions with ESG Components – Social Sphere
50 INSURANCE SOLUTIONS WITH ESG COMPONENTS – SOCIAL SPHERE Promote responsible behaviour with positive impact on people and Health products Protect specific categories of people (i.e. young families, children, the elderly) Products aimed at targeted clients/events: • Products strengthening social in
Slide 51: Generali's Climate Metrics Overview
51 GENERALI’S CLIMATE METRICS OVERVIEW Metrics Target 2019 2020 2021 2022 ∆ 2019-2022 Responsible Underwriting Responsible GWP from Insurance Solutions with ESG components (€ bn) 1 +5%-7% CAGR 21-24 NA1 NA1 17.1 19.9 +11.7% 2021-2022² Insurer Property & Casualty premiums exposure to fossil fuels 0 b
Slide 52: Generali's Key Sustainability & ESG Ratings Trends
52 GENERALI’S KEY SUSTAINABILITY & ESG RATINGS TRENDS MSCI ESG Rating1 S&P Corporate Sustainability Assessment2 • Attained highest • Ranked 2nd in possible rating in 100 insurance sector AAA AAA November 2022 90 AA AA AA AA AA 80 81 87 • Included in DJSI 73 A • Top 20% in multiline Europe and World
Slide 53: Megatrends and Generali's Key Issues
53 MEGATRENDS AND GENERALI’S KEY ISSUES MATTERS MATERIAL MEGA TRENDS AND THOSE OF MAIN RISK CATEGORIES KEY PERFORMANCE INDICATORS SUSTAINABLE CONSIDERABLE RELEVANCE DEVELOPMENT GOALS CLIMATE CHANGE GHG emissions from Group operations Electricity purchased from renewable sources Emerging sustainabili
Slide 54: Contacts
54 CONTACTS Assicurazioni Generali Piazza Duca degli Abruzzi 2 34132 Trieste, Italy e-mail: ir@generali.com generali.com Lucia Silva Rodolfo Svara Michele Amendolagine Group Chief Sustainability Officer Investor & ESG Relations Head of Shareholder & Governance csr@generali.com rodolfo.svara@generali
Slide 55: Disclaimer
55 DISCLAIMER Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. The user of such information should r
Slide 56: Siok.
Siok. GENERALI