Generali to cut coal investments in new climate change strategy
(Reuters) — Italian insurer Assicurazioni Generali S.p.A. has pledged to raise its investments in environmentally friendly projects and divest from the coal industry as part of a new climate-change strategy.
Europe’s third-biggest insurer said it would raise investments in “green” sectors by €3.5 billion ($4.3 billion) by 2020, mainly through green bonds and infrastructure.
At the same time, it will divest its current exposure to the coal sector of around €2 billion by selling equity stakes and exiting bond investments by bringing them to maturity or even divesting before maturity.
Generali’s move adds to the recent trend of asset managers and wealth funds cutting back on carbon-related investments as policy makers step up efforts to address environmental concerns.
Last December, French insurer Axa S.A. quadrupled its green investments and disinvested further from coal.
Europe’s biggest insurer, Allianz S.E., which got out of the business of investing in coal in 2015, said last week it was considering whether to stop insuring new coal power plants.
“Protecting the environment and adopting effective actions to tackle climate change are central issues for Assicurazioni Generali,” Generali’s Chief Executive Philippe Donnet said.
Generali said its current exposure to coal-related activities was minimal as a percentage of its total nonlife premiums.
“The group will continue its policy of minimal insurance exposure,” it said.
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The Investor Agenda recognizes 2020 as a tipping point for taking action to avoid irreparable climate change, in line with the goals of the Paris climate agreement, and focuses on accelerating action in four key areas: investment, corporate engagement, disclosure and advocacy, according to a summary of the initiative. Seven partner organizations focusing on these areas developed the initiative: Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, Principles for Responsible Investment and UNEP Finance Initiative.
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