Investment portfolio decarbonisation

As an institutional investor and asset owner, the Group has identified the fight against climate change as one of the pillars of its strategy, considering both the potential risks to the financial performance of its investments and the potential negative impacts on the environment and society. 

The Group has outlined in the Technical Note on the Generali Group's Climate Change Strategy the commitments made to pursue the long-term goal of supporting the transition to a low-carbon economy and decarbonising its investment portfolio to achieve net-zero greenhouse gas emissions by 2050, in line with the goals of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels. 
Generali has set medium-term climate targets for 2024 and subsequently for 2030, based on data referring to the end of 2029, in accordance with the protocol shared by participants in the Net-Zero Asset Owner Alliance (NZAOA), which it has adhered to since 2020. 
The scope of application of the Group's strategy extends to proprietary investments, excluding investments managed on behalf of third parties.
The Group translates its climate change guidelines into concrete actions integrated within the investment process and aimed at reducing negative impacts and risks associated with climate change. These actions are implemented through the following three approaches: exclusion, integration, and engagement and voting activities.

Find out more in the Integrated Annual Report and Consolidated Financial Statements 2024.

Lifetime Partner 27: Driving Excellence (2025-2027)

As part of the Lifetime Partner 27: Driving Excellence strategy, the Group intends to further strengthen its climate change strategy through the following goals:

Metrics and targets of the strategy Lifetime Partner 27: Driving Excellence (entity-specific information)

Target Metric Metric value at 31/12/2024 Target level to achieve Target application time horizon Baseline and base year

Decarbonisation of corporate portfolio

 

 Carbon intensity of corporate investment portfolio (EVIC) 89
tCO2e/€ mln invested		 -60% carbon intensity of corporate investment portfolio (EVIC) 2019-2030(*) 182
 tCO2e/€ mln invested
(2019)
Number of companies engaged on climate change N/A 20 companies engaged on climate change 2025-2030(*)  0 
(2025)

Decarbonisation of real estate portfolio

 Carbon intensity of GRE real estate portfolio  33.5 
KgCO2e/m2		 -60% carbon intensity of GRE portfolio 2019-2030(*) 61.2 KgCO2e/m2
(2019)
Support to climate transition Investments in climate solutions € 26.7 bln Increase of € 12 bln of investments in climate solutions 2024-2027 € 26.7 bln 
(2024)

(*) The metric refers to the period from 1 January 2025 to 31 December 2029.

The Group set new decarbonisaton targets for both corporate and real estate portfolios in accordance with the NZAOA protocol guidelines; these require reductions between 40% and 60% by the end of 2029 (compared to the end of 2019) in line with the most accredited scientific bases available provided by the Intergovernmental Panel on Climate Change (IPCC), the main international organization responsible for studying the scientific aspects of climate change1.

Both for the corporate investment portfolio and the real estate portfolio, the new carbon intensity reduction target is positioned at the upper end of the range provided by the NZAOA protocol, in coherence with the Group's ambition.

In the general framework of the Group's climate policies, the objectives will be pursued by implementing specific actions both in investment management and active engagement with the involved counterparties (issuers and delegated asset managers). In particular, with reference to engagement with the issuers in the portfolio, the Group has confirmed the target by maintaining the same logic as the previous objective, namely identifying year by year until 2029 the engagement opportunities among the 20 invested companies that each time contribute most to the Group's carbon intensity.

With reference to delegated asset managers, the Group will continue the ongoing dialogue with its managers to supervise the correct implementation of climate policies and the achievement of the defined objectives.

1 For the definition of carbon intensity reduction range, NZAOA considered a selection of C1 scenarios included in the IPCC Sixth Assessment Report.

In line with the commitment to support the climate transition, the Group has set a target for investments in so-called climate solutions, i.e., investments that contribute to decarbonisation and climate resilience, selected based on criteria consistent with existing taxonomies and market reference frameworks.

The achievement of the target, subject to market conditions and constraints, will be supported by various types of investments:

  • corporate and government green and sustainable bonds where, based on the issuance prospectus, the proceeds are predominantly invested in projects and/or activities aimed at climate change mitigation and adaptation2;
  • real estate investments: properties that contribute to the achievement of the target are aligned with the European Taxonomy or properties that have high-level sustainability certifications combined with a high level of energy efficiency3;
  • funds: the funds are characterized by integrating specific climate mitigation and adaptation objectives into their investment policy, as defined by the reference transparency regulations (SFDR, ESMA guidelines, and similar). All asset classes may be subject to investment in this category, with a preference for infrastructure, equity, and debt classes.

These investments will also be pre-screened through the Group's negative screening criteria to verify their overall sustainability profile.

This objective represents an evolution of the target achieved at the end of 2024 through new green and sustainable investments, with a specific focus on climate change goals and extending the scope to a wide range of investments.

2 Based on official labels (such as , the EU Green Bond label) or market reference frameworks (ICMA). 
3 High-level certifications include: BREEAM Very Good or higher; LEED Gold or higher; and equivalent levels of local certifications (HQE, DNGB). High energy efficiency is defined as equal to or better than C or the top 30% in the reference market.

Lifetime Partner 24: Driving Growth (2021-2024)

As responsible Investor, within the Lifetime Partner 24: Driving Growth, the Group has committed to integrating climate change into its investment activities by setting specific targets:

  • in line with the principles of the NZAOA:
    • reduce the carbon intensity of the portfolio of direct investments in listed equities and corporate bonds by 25% compared to 2019, also through engagement with 20 portfolio companies selected based on the greenhouse gas emissions intensity produced during their activities;
    • according to the Carbon Risk Real Estate Monitor (CRREM) methodology, align at least 30% of the market value of the real estate portfolio to the global warming trajectory of 1.5°C.
      These are intermediate decarbonisation targets for the portfolio to be achieved by 2024, reflecting Generali's continued commitment to achieving net zero greenhouse gas emissions in its portfolios.
  • make at least € 8.5 - 9.5 billion of new net investments in green, social, and sustainable bonds by the end of 2025.

Metrics and targets of the strategy Lifetime Partner 24: Driving Growth (entity-specific information)

Target Metric Metric value at 31/12/2024 Target level to achieve Target application time horizon Baseline and base year

Decarbonisation of corporate portfolio

 

 Carbon intensity of corporate investment portfolio (EVIC) 89
tCO2e/€ mln invested		 -25% carbon intensity of corporate investment portfolio (EVIC) 2019-2024 182
 tCO2e/€ mln invested
(2019)
Number of companies engaged on climate change 31(*) 20 companies engaged on climate change 2021-2024 0 
(2021)

Decarbonisation of real estate portfolio

 GRE real estate portfolio aligned to the CRREM pathway 58.2% At least 30% of GRE real estate portfolio aligned to the CRREM pathway  2019-2024 N/A(**) 
Support to climate transition New green and sustainable investments € 13,921 mln(***) € 8,5-9,5 bln new green and sustainable investments 2021-2025 0(2021)

(*) The metric refers to the period from 1 January 2021 to 31 December 2024, and is cumulated.
(**) Due to the limited availability of data for the base year and because, by construction, the target is defined based on the portfolio outcome in the reporting year, regardless of the value recorded in the base year.
(***) The metric refers to the period from 1 January 2021 to 31 December 2024, and is cumulated. The target is considered incremental with respect to the base year.

The Group has met the commitments made in the Lifetime Partner 2024: Driving Growth strategy, in some cases substantially exceeding the objectives.

Find out more in the Integrated Annual Report and Consolidated Financial Statements 2024.