Slide 1: ESG Investor Presentation 2024
ESG INVESTOR PRESENTATION 2024
Slide 2: Summary
SUMMARY 01. INTRODUCTION TO OUR BUSINESS 02. OUR SUSTAINABILITY FRAMEWORK AND FOUNDATIONS 03. OUR STRATEGIC TARGETS & KEY TRENDS, WITH A FOCUS ON CLIMATE PLAN 04. SUSTAINABLE FINANCIAL MANAGEMENT 05. LIFETIME PARTNER 27: DRIVING EXCELLENCE - NEW SUSTAINABILITY STRATEGY 06. 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 Man
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 Sustainability Journey
6 OUR SUSTAINABILITY JOURNEY OUR PURPOSE: “Enable people to shape a safer and more sustainable future by caring for their lives and dreams”
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 Corporate Citizen Materiality Assessment € Climate Change Strategy Net-Zero amb
Slide 9: Our Governance: Board of Directors, Committees and GMC
9 Sustainability Foundations OUR GOVERNANCE: BOARD OF DIRECTORS, COMMITTEES AND GMC Innovation, Social and Environmental Sustainability Committee SHAREHOLDERS Chair: Umberto Malesci, Independent – 42 y.o. INDEPENDENT MEETING BOARD OF STATUTORY AUDITORS It is appointed by the Shareholders’ Meeting an
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 ▪ 53% have relevant ESG experience ▪ 46% female representation ▪ 60 years average age BOARD OF DIRECTORS ▪ Independent Chair ▪ 94% averag
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 Life UW and Reserving Investment Governance Group Risk Management Policy Group Policy Policy P
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 Phase-out
Slide 16: Sustainability at the Heart of All Our Activities
16 SUSTAINABILITY AT THE HEART OF ALL OUR ACTIVITIES¹ Carbon footprint of investment portfolio (EVIC)2 Premiums from insurance solutions with ESG components3 98 tCO2e/€ m -46.2% vs 2019 (base year) € 20,815 m +7.4% (CAGR 2021-2023) New green and sustainable investments (2021-2023) Relationship NPS €
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 +7.4% CAGR 2024 Target of Target: Maintain 22 Nat Cat Bond 5% - 7% CAGR leadership vs 18 Green & Sustainability Bond 20.8 19.9
Slide 18: Sustainability Commitments Throughout Our Business Value Chain
18 Sustainability Strategy SUSTAINABILITY COMMITMENTS THROUGHOUT OUR BUSINESS VALUE CHAIN Group strategic targets REGULATORY FRAMEWORK MARKET TRENDS MATERIALITY ASSESSMENT INPUTS (e.g. SFDR, TAXONOMY, CSRD) (formerly known as materiality matrix) GROUP STRATEGY AND GROUP AMBITION STAKEHOLDERS’ EXPECT
Slide 19: Responsible Investor
RESPONSIBLE INVESTOR aon. GENERALI
Slide 20: Sustainable Investments Framework for Managing Sustainability Factors
20 Responsible € SUSTAINABLE INVESTMENTS FRAMEWORK FOR Investor 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: Negative Screening in Direct Investments
21 Responsible € NEGATIVE SCREENING IN DIRECT INVESTMENTS Investor The Group excludes from its investments issuers with poor ESG practices that are representing higher sustainability and reputational risks Controversies ESG Laggards Unconventional corporate and sovereign corporate and sovereign Weap
Slide 22: Negative Screening - Climate Change
22 Responsible € NEGATIVE SCREENING - CLIMATE CHANGE Investor Fossil fuels companies Integrated Oil and Gas companies Companies classified as «Transition Laggards» according to an internal model1 By 2030, 100% of the Integrated O&G companies in Scope must have a Net Zero No new investments in Oil an
Slide 23: Integrate: Investments with Sustainable Characteristics
23 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 the community as a whole Green and sustaina
Slide 24: Investments Portfolio Decarbonisation: Net-Zero GHG Emissions by 2050
24 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 25: Responsible Insurer
RESPONSIBLE INSURER aon. GENERALI
Slide 26: Responsible Underwriting Framework for Managing Sustainability Factors
26 Responsible RESPONSIBLE UNDERWRITING FRAMEWORK FOR Insurer MANAGING SUSTAINABILITY FACTORS ESG APPROACHES AVOID INTEGRATE INFLUENCE INSURANCE SOLUTIONS WITH ESG COMPONENTS ACTIVE NEGATIVE NET-ZERO INSURANCE EU TAXONOMY OWNERSHIP1 SCREENING JOURNEY EXISTING vs NEW (ENGAGEMENT) INSURANCE SOLUTIONS
Slide 27: Negative Screening: P&C Underwriting Exclusion Criteria
27 Responsible NEGATIVE SCREENING: P&C UNDERWRITING EXCLUSION Insurer CRITERIA 1 The Group excludes from its insurance portfolio risk coverages for key sectors Key Sectors Sensitive Sectors i) Coal related Business ii) Oil and gas related business All companies ▪ Coal Share of revenues > 20% Upstrea
Slide 28: Integrate: Insurance Solutions with ESG Components
28 Responsible Insurer INTEGRATE: INSURANCE SOLUTIONS WITH ESG COMPONENTS THE RESPONSIBLE CONSUMER ECOSYSTEM Premiums from insurance solutions with Premiums from insurance solutions with ESG ESG Components – environmental sphere Components – social sphere Insurance Solutions with ESG components1 Pro
Slide 29: Supporting European Enterprises
29 Responsible Insurer SUPPORTING EUROPEAN ENTERPRISES SME EnterPRIZE – 3rd Edition Overview Importance for Generali Our Ambition In line with the Generali 22-24 Group Strategy, through the flagship project SME Develop an ecosystem to promote a culture of Sustainability among EnterPRIZE, the Group a
Slide 30: Lifetime Partner 24 & Digital Assets
30 Responsible Insurer LIFETIME PARTNER 24 & DIGITAL ASSETS 2023 2022-24 €1.1 billion C U M U L AT I V E I N V E S T M E N T S I N D I G I T AL & T E C H N O L O G Y Our Customers 70 million +3.3% New Relationship Model - shared customer and data ownership to drive Value Our Agents Effortless & Cari
Slide 31: Responsible Employer
RESPONSIBLE EMPLOYER aon. GENERALI
Slide 32: Our People Strategy
32 Responsible Employer OUR PEOPLE STRATEGY Our People Women Men 81,879 -0.2% 41,800 +0.9% 40,079 -1.4% Enhance a Lifetime Partner, sustainable and 2023 KEY HIGHLIGHTS CULTURE meritocratic culture Engagement Rate Build a more diverse work environment ensuring DEI -1 p.p. vs 2022, -1 p.p. vs equal op
Slide 33: Diversity, Equity & Inclusion
33 Responsible Employer DIVERSITY, EQUITY & INCLUSION 2023 Targets 40.0% WOMEN IN 2022-24 STRATEGIC POSITIONS1 ZEROING EQUAL PAY GAP Women in strategic positions1 34.8% +5.4 p.p 2023 Highlights Diversity – Lioness Acceleration Program for senior managers; Launch of TOGETHER – women and allies networ
Slide 34: Decarbonisation of Generali's Own Operations
34 Responsible Employer DECARBONISATION OF GENERALI’S OWN OPERATIONS OUR COMMITMENT THE MAIN LEVERS TO ACHIEVE THE TARGET The Group is decarbonising its own operations in line with climate-science. The specific target has been strengthened and approved by the Board of Directors in March 2023, and it
Slide 35: Responsible Citizen
RESPONSIBLE CITIZEN aon. GENERALI
Slide 36: The Human Safety Net: Generali's Initiative for the Community
36 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: ▪ Brings together the streng
Slide 37: Sustainable Financial Management
SUSTAINABLE FINANCIAL MANAGEMENT
Slide 38: Sustainable Financial Management
38 SUSTAINABLE FINANCIAL MANAGEMENT GREEN GREEN SUSTAINIBILITY INSURANCE-LINKED BOND BOND SECURITIES FRAMEWORK1 FRAMEWORK1,2 FRAMEWORK1 2019 2020 2021 2021-2022 2022 2023 2024 2025 1st Green Bond 2nd Green Bond 1st Sustainability Lion III Re – first 3rd Green Bond 4th Green Bond4 6th Green Bond4,5 8
Slide 39: Generali Green, Social and Sustainability Bond Framework
39 GENERALI GREEN, SOCIAL AND SUSTAINABILITY BOND FRAMEWORK In December 2023 we updated the previous Sustainability Bond Framework in the Generali Green, Social and Sustainability Bond Framework in accordance with the ICMA principles and the key aspects of the EU Green bond Standard. The Framework w
Slide 40: The Green Insurance Linked Securities Framework
40 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 transfer Premium Interests + Spread, & notional at due date o
Slide 41: ESG Features in the Revolving Credit Facilities
41 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 42: Lifetime Partner 27: Driving Excellence New Sustainability Strategy
LIFETIME PARTNER 27: DRIVING EXCELLENCE NEW SUSTAINABILITY STRATEGY
Slide 43: Sustainability Rooted Excellence
43 SUSTAINABILITY ROOTED EXCELLENCE -30% emissions by 2030 Confirm commitment towards net-zero greenhouse gas for insurance1 emissions by 2050 GREEN AND JUST -60% emissions by 2030 TRANSITION for investments2 and own operations3 Develop new climate transition solutions +€12 Bn investments4 in climat
Slide 44: Annex
ANNEX aon. GENERALI
Slide 45: Generali Approach to Climate Change Risk
45 GENERALI APPROACH TO CLIMATE CHANGE RISK CLIMATE IMPACT STRONG GOVERNANCE Risk Management Climate Change Strategy updates Group Policy delivered to the Board of Directors Sustainability Risk Sustainability Committee Cross-function & business unit Group Guideline leads the Strategy Climate Strateg
Slide 46: Climate Change Framework Overview
46 CLIMATE CHANGE FRAMEWORK OVERVIEW CLIMATE IMPACT 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 Gove
Slide 47: Climate Change Risk Management – Methodology
47 CLIMATE CHANGE RISK MANAGEMENT – METHODOLOGY SCENARIO The impact of climate change risks on the Group’s investment portfolio, P&C underwriting portfolio and life underwriting portfolio is assessed through the CLIMATE STRESS EXPOSURES Clim@risk methodology. IMPACT The scope of Clim@risk methodolog
Slide 48: Climate Change Risk Management – Potential Impacts
48 CLIMATE CHANGE RISK MANAGEMENT – POTENTIAL IMPACTS NEW IN 2023 INVESTMENTS - ILLUSTRATIVE P&C UNDERWRITING - ILLUSTRATIVE Starting from 2023, the impacts of physical Divergent Delayed Current and transition risk are also monitored in the Net-Zero Current Net-Zero Divergent Delayed Below 2°C NDC1
Slide 49: Generali's Climate Metrics Overview
49 GENERALI’S CLIMATE METRICS OVERVIEW Metrics Target 2019 2020 2021 2022 2023 2024 ∆ 2019-2023 Responsible Underwriting RESPONSIBLE GWP from Insurance Solutions with ESG components (€ bn)1 +5%-7% CAGR 21-24 NA NA 17.1 19.9 20.8 +7.4% 2021-2023 CAGR INSURER Property & Casualty premiums exposure to f
Slide 50: Board Members: Skill Matrix
50 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 51: Focus on the Board of Directors
51 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: 59 Age: 56 Age: 63 Age: 42 Age: 65 In office since: 28/02/2022* In office since: 29/04/2022 02/05/2022** In o
Slide 52: Materiality Assessment
52 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 1 Central cluster identifies the material
Slide 53: European Taxonomy Disclosures
53 EUROPEAN TAXONOMY DISCLOSURES 2023 Underwriting Activities 2023 Investment Activities The P&C Gross Written Premiums (GWP) from Group The coverage of assets assessed amounted to € 341,937 million, or 66.8% of total Group assets. activities in 2023 amounted to € 31.1 billion. Insurance companies c
Slide 54: Insurance Solutions with ESG Components – Environmental Sphere
54 INSURANCE SOLUTIONS WITH ESG COMPONENTS – ENVIRONMENTAL SPHERE Solutions offering coverages and services to clients with habits, behaviors or activity that respect the environment Mobility Products offering coverages and services dedicated to sustainable mobility and/or with a reduced environment
Slide 55: Insurance Solutions with ESG Components – Social Sphere
55 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 aimed at promoting and st
Slide 56: Generali's Key Sustainability & ESG Ratings Trends
56 GENERALI’S KEY SUSTAINABILITY & ESG RATINGS TRENDS OTHER ESG RATINGS AWARED AN ‘A-’ BY CDP CLIMATE RANKED 36/304 AND ‘LOW RISK’ BY SUSTAINALYTICS ATTAINED ISS QUALITYSCORE: ENVIRONMENT: 1, SOCIAL: 2, AND GOVERNANCE: 1 RANKED 1ST OUT OF 349 COMPANIES, WITH AN LSEG ESG SCORE OF 92/100 1. MSCI ESG R
Slide 57: Megatrends and Generali's Key Issues
57 MEGATRENDS AND GENERALI’S KEY ISSUES MATERIAL MEGA TRENDS AND THOSE OF SUSTAINABLE MATTERS ex leg. Decree 2016/254 MAIN RISK CATEGORIES KEY PERFORMANCE INDICATORS CONSIDERABLE RELEVANCE DEVELOPMENT GOALS CLIMATE CHANGE GHG emissions from Group operations Emerging sustainability risks with Electri
Slide 58: Contacts
58 CONTACTS Assicurazioni Generali Piazza Duca degli Abruzzi 2 34132 Trieste, Italy e-mail: ir@generali.com generali.com Lucia Silva Anna Jagiello Michele Amendolagine Group Chief Sustainability Officer Event Coordinator & ESG Head of Shareholder & Governance Communication sustainability@generali.co
Slide 59: Disclaimer
59 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 60: Generali
GENERALI