MILAN (Reuters) -Generali said on Wednesday it had pledged up to 9.5 billion euros ($11.30 billion) to green and sustainable investments over the 2021-25 period as part of its new climate protection strategy.
Under the new strategy Italy’s top insurer aims to fully phase out investments in companies that operate in the thermal coal sector by 2030 in the OECD countries and by 2040 in the rest of the world, it said in a statement.
“We believe that the private sector can play a key role in financially supporting the ‘Just Transition’ for a future with net-zero greenhouse gas emissions by assisting public institutions in taking the necessary actions”, Chief Executive Philippe Donnet said.
Generali made green and sustainable investments of 6 billion euros in 2019-20, exceeding one year in advance the target of 4.5 billion euros by 2021 set in a plan presented in February 2018.
Under the new plan, the Italian insurer aims to reach carbon neutrality of its direct investment portfolio by 2050, in line with the Paris Climate Agreement’s goal.
Last week Generali successfully placed its first sustainability bond, a 500 million euro Tier 2 bond due in June 2032. Net proceeds will be used to finance eligible sustainability projects.
($1 = 0.8410 euros)
(Reporting by Gianluca Semeraro, editing by Louise Heavens)
