Generali added to UN’s Net-Zero Asset Owner Alliance

Written by Michael Griffiths

22/01/2020

Italian insurance group, Generali, has been added to the United Nations-convened Net-Zero Asset Owner Alliance, bringing the total assets managed by Alliance members to over $4.3trn.

Four months after 12 of the world’s largest pension funds and insurers committed to decarbonise their investments by 2050, Generali has joined the Alliance alongside the Church of England’s three investment bodies, with the group now numbering 18.

The Alliance has finalised its governance and objectives for 2020 and will focus on three core areas – which include advancing its measurement and public reporting, engaging with portfolio companies on a net-zero target, and engaging policymakers towards policies supporting net-zero economy ambitions.

Generali Group CIO and CEO of asset and wealth management, Tim Ryan, said: “We are proud to be part of the Net-Zero Asset Owner Alliance. It is about walking the talk and further aligning our investment portfolio to our long-term commitments. As a financial services operator we feel the responsibility of contributing to achieving carbon neutrality by 2050.”

The group of 18 pension funds and insurers are committed to decarbonise their portfolios to net-zero emissions by 2050 to avoid a global temperature increase above the 1.5°C Paris target.

The Alliance has indicated this will not be attained through divestment, but rather through working closely with portfolio companies to change their business models, adopt climate friendly practices, and to set a net-zero target to strive for a 1.5°C world.

Head of UNEP FI, Eric Usher, welcomed Generali to the Asset Owner Alliance, and commented: “All members are showing an extremely high level of commitment to portfolio decarbonisation, as they hold themselves accountable on progress by setting and publicly reporting on intermediate targets in line with the Paris Agreement.”

PRI CEO Fiona Reynolds, added: “The UN Asset Owner Alliance is perhaps the most exciting climate initiative of the new decade, because asset owners aren’t just asking companies to commit to a Paris aligned world, they are committing to action – to transition their entire portfolios to net zero by 2050 with metrics, targets and regular reporting to hold themselves accountable – thereby demonstrating real leadership.”

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