The board of directors of Generali approved the Italian insurer's strategy on climate change, increasing its exposure to green businesses and gradually divesting from coal-related companies.
The company will increase investment in green sectors by €3.5 billion by 2020, mainly through green bonds and green infrastructures. In terms of underwriting, Generali said it will increase the percentage of the premium portfolio related to the renewable energy sector, and also increase the offering of products with environmental value for the retail market and small and medium-sized enterprises.
At the same time, Generali will divest its current exposure to the coal sector, equivalent to about €2 billion, through the disposal of equity investments and exiting bond investments by bringing them to maturity or divesting them before maturity.
The insurer said it will provide exceptions in countries where coal is relied upon for the production of electrical and heating engines, without alternatives in the medium term.