Generali Investments takes steps towards promoting sustainability

(Ljubljana, 1 February 2023) As many as 11 out of the total 15 Generali Umbrella Fund subfunds managed by Generali Investments promote environmental characteristics and social characteristics. Funds whose investment policies declare respect of the ESG** principles have EUR 38 trillion worth of assets under management globally, of which EUR 34 trillion are in the EU. Over the past year, inflows into these funds in the EU have doubled compared to the year before.

As of 1 February 2023, Generali Investments – the oldest asset management company in Slovenia and a member of the Generali Group – amended the investment process of 11 of its 15 Generali Umbrella Fund subfunds by integrating sustainability risk in their investment decision-making. These funds qualify as the financial products referred to in Article 8 of the SFDR Regulation*, i.e. funds promoting environmental and social characteristics.

Investors keen to contribute to sustainable development

Generali Investments believes it can play its part at a time marked by growing threats to the environment, negative climate change, and demands to meet higher social and corporate standards by promoting sustainability performance of the issuers of the financial instruments invested in by its subfunds. This certainly goes hand in hand with the general trend towards more sustainable development, and the increasing desire of most investors to themselves contribute to a sustainable future.

Key changes lead the investment process towards more sustainable development

From now on, the investment process will employ the ESG integration approach. The attainment of the new investment objective of the aforementioned 11 subfunds, which is defined as capital growth pursued by promoting environmental and social characteristics, will be measured by means of a joint indicator, i.e. the share of the assets of each of the subfunds covered by the ESG integration strategy. Investments considered to be aligned with environmental and social characteristics promoted by each of the subfunds will represent between 75% and 100% of their assets.

The Generali Group, one of the largest global financial and insurance groups (of which Generali Investments is a member), integrated sustainability principles into its business processes some time ago. Care for a more sustainable future is reflected in its investment decisions, employee engagement and customer relations. The objective is to create competitive returns in the long-term while at the same time generating positive impacts for society (S), the environment (E) and corporate governance (G) – the ESG factors. The integration of the ESG principles requires engagement and action on the part of all stakeholders: firstly, the state, whose task is to regulate this area in a systemic way, with appropriate incentives and laws. Secondly, companies, who will have to implement the laws and other rules in their business, amending their business processes accordingly. Just as important stakeholders are financial institutions catering for appropriate capital allocation and individuals displaying responsible conduct.

SFDR means Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector, which lays down rules for financial market participants and financial advisers on transparency with regard to the integration of sustainability risks and the consideration of adverse impacts in their processes and the provision of sustainability‐related information with respect to financial products.


**ESG is an abbreviation denoting Environmental (E), Social (S) and Governance (G) factors.