Italian insurer Generali announced that it will divest EUR 2 billion worth of coal investments by 2020, while increasing green investments by EUR 3.5 billion.

Generali Group, one of Europe's leading insurers, announced last week that its board of directors had approved a new climate change strategy, abandoning coal-related activities and investments while increasing investment in green energy.

Generali is Italy's leading insurer, Germany's second-largest insurer, and one of the major insurers in France. The company had total premium income of EUR 70 billion at the end of 2016 and operates in Central and Eastern Europe, Asia and Latin America. Its new climate change strategy is part of the company's larger and ongoing commitment to sustainable investment, "in line with the company's commitment to addressing the most significant global challenges."

Specifically, Generali pledged to increase investment in the green sector by EUR 3.5 billion by 2020, mainly through green bonds and green infrastructure. In addition, Generali will stop investing in businesses related to the coal industry and fully divest its EUR 2 billion of coal-related investments.

Regarding coal divestment, Generali will stop making new investments in coal, divest existing equity investments, and end its bond investments in coal by holding bonds to maturity or considering divesting them before maturity. However, exceptions will be made for countries whose electricity and heating production still depends on coal and which have no other alternatives in the medium term; these exceptions are expected to account for only 0.02% of the company's investments.

On how to precisely define "coal-related business," Generali said it has "strict criteria":

Companies deriving more than 30% of revenue from coal

Companies deriving more than 30% of their energy needs from coal

Mining companies producing more than 20 million tonnes of coal annually

Companies actively involved in building new coal facilities or plants

"Protecting the environment and taking effective measures to combat climate change are core goals of Generali," said Group CEO Philippe Donnet. "Following a series of climate initiatives taken over the past few years, the company has strengthened its leadership as a responsible business and contributed to building a healthy, resilient and sustainable society."

Source: Coal.com.cn  2018-03-02