Sustainable governance
We believe that sustainability is the only path to growth: this is why we are committed to implementing the 17 Sustainable Development Goals of the United Nations 2030 Agenda.
Our sustainable approach
The Bank and its people are focused on protecting households’ wealth with integrity, passion and dedication, with an emphasis on long-term objectives. A commitment to pursuing sustainable growth requires the vision needed to understand and anticipate the challenges of innovation, an inclusive culture, openness to dialogue and an informed approach to creating value for the Bank’s stakeholders.
Our goal: a sustainable growth
A responsibility for taking a long-term approach is an intrinsic part of our way of doing business, focused on protecting wealth according to a long-term vision. Therefore, we promote sustainable development that listens to all the different stakeholders, seeking to understand their real needs and matching them to the Company’s business objectives. Excellence in the wealth advisory market cannot ignore the focus on value creation for all stakeholders who participate in and interact with that market: shareholders, financial advisors, employees, customers, suppliers — with whom the Bank has daily contact.
Our sustainability strategy is characterised by:
- sustainable growth over time, with entrepreneurial actions aimed at achieving long-term economic and commercial results, minimising risks related both to the volatility of the economic-financial scenario, and the inadequate planning of objectives, due to short-term needs;
- people enhancement, encouraging the constant development of skills and professionalism and acknowledging the contribution of individuals to the success of the organisation;
- sensitivity to the social context, participating in charitable, cultural and sports initiatives;
- reduction of direct and indirect environmental impacts by taking measures to minimise the consumption of energy, paper and water, and lower pollutant emissions.
A new way to invest
Letter to stakeholders
Dear Stakeholders,
2019 was an exciting year for the Bank, in terms of the numerous initiatives launched, as well as the growth and the results achieved. During the year, the first steps were taken under the 2019-2021 Strategic Plan, with faster progress in many key areas and confirmation of the main objectives. Despite a very positive overall performance, the market scenario was not entirely linear throughout the year: in fact, in early January and February 2019, it was extremely volatile, in continuity with the end of the previous year. This very uncertainty and complexity, which emerged in the winter of 2018, convinced us to seek out an approach increasingly close to investors’ sensitivities, in terms of both wealth protection in an environment of heightened risk aversion and setting new challenges clearly indicative of the long-term sustainable growth that is a core component of the Bank’s vision and mission. With this in mind, the Three-Year Strategic Plan was approved and presented to the financial community, with the aim of consolidating Banca Generali’s strategic leadership in Italy in the networks sector, and in private banking in particular, increasing service quality for Customers and laying the foundation for international growth, starting with Switzerland. The common thread that ties these projects together is sustainability, in its key forms, such as a focus on human capital, through a system of values and a shared long-term vision. It was therefore a very important result for Banca Generali to find that the involvement of its people — assessed every two years — has risen to a degree of absolute excellence, as confirmed by the levels of participation and engagement: 96% and 82%, respectively. Many initiatives were launched: the Strategy Road for sharing Strategy, the introduction of smart working and the launch of various diversity and inclusion activities. These initiatives came in addition to the Bank’s commitment to pursuing excellence in governance, with an openness to dialogue, confirmed not only by the strong female presence and majority of independent Directors within the Board of Directors, but also by the focus on issues relating to transparency in corporate management. The commitment to sustainable growth also entails promoting social and cultural development. Efforts in this direction included various projects in the arts, such as support and assistance for universities in conducting joint research and studies relating to savings and the relevant applied technologies. Innovation is a fundamental driver of Banca Generali’s strategy. The BG Training & Innovation Hub — a space for brainstorming on the future developments of private banking, stimulating dialogue and conducting research into the subjects of financial services and advice — was also inaugurated in early 2020. Drawing on a company culture increasingly imbued with the values of sustainability, and supported by our Group’s solid roots (Generali Assicurazioni), the next step on which the Bank has embarked is raising awareness amongst households of these distinctive sustainability features. This was the impetus to be the first in Italy to develop an exclusive model capable of pairing investment diversification objectives with a sustainability-oriented approach that concretely contributes to the 17 Sustainable Development Goals (SDGs) set by the United Nations in its 2030 Agenda. Since the launch of the platform in early 2019, the focus on ESG (environmental, social and governance) investments amongst customers has intensified rapidly, allowing the targets set for the end of the plan to be reached two years in advance. Social development, support for the growth of local communities and society, but also creation of value for all stakeholders within the Bank’s orbit: it is from this perspective that we report the Company’s results. Assets under management and assets under custody rose to 69 billion euros, increasing by 11.5 billion in the twelve months. Benefiting from the Bank’s business expansion and the gradual market recovery seen during the year, profits reached 272 million euros, the highest level in the Bank’s history. Propelled by this performance, the proposed remuneration for shareholders has reached a new all-time high of 185 eurocents per share, of which 30 eurocents to be drawn on the following year, in further pursuit of financial sustainability. I would like to express my heartfelt thanks to the top management, employees and professionals in the network for the invaluable work done and dedication shown in striving to continue to uphold our Bank as a beacon of ethics, professionalism and ability to achieve ambitious goals in the Italian financial service market. I would also like to express my deep gratitude to the colleagues on the Board of Directors, who have successfully facilitated dialogue and offered competent, resolute decision- making guidance for the management, with tangible results for all stakeholders.
Giancarlo Fancel
Chairman of Banca Generali
Charter of Sustainability Commitments and Responsible Investment Policy
Materiality analysis and matrix
The materiality matrix, in line with the Generali Group’s guidance, identifies a number of significant themes that are pursued with concrete actions, for sustainable growth that does not lose sight of the social function that every responsible enterprise must have. This analysis resulted in the identification of 21 main topics in 6 different macro-areas: community, governance, social responsibility, economic responsibility, product responsibility and environmental responsibility.
Given the nature of the business and with a view to focusing our efforts, we have identified, in particular, a selection of SDGs to which to refer more closely.
The formation of the Nomination, Governance and Sustainability Committee within the Board of Directors, the structured internal control system and the policies and procedures in place with regard to preventing corruption and ensuring sound management of the business bear witness to our commitment to developing effective and inclusive institutions.
We view people as a key asset to our strategy and develop various initiatives and measures designed to ensure equal opportunity and respectful, fair working conditions and to avoid all forms of discrimination: work-life balance programmes and focus on people and family, engagement activities and personal development and training initiatives, as well as a diversity and inclusion Action Plan.
We focus on social, environmental and corporate governance issues, which are taken into account when designing products and services, with an offering that integrates ESG criteria in the investment strategy of customers to raise awareness among them, and educate them on sustainability issues. For this reason, we have identified and selected specialised, dedicated partners with which to implement ESG-related strategies, products and services, such as MainStreet Partners, specialised in identifying sustainable portfolio solutions and impact investments.
The correlation between the material issues and the GRI (Global Reporting Initiative) guidelines are reported below, with a focus on their internal and/or external impact.
Social and personnel-related themes
1. Creation of employment and responsible M&A management
The issue of employment, together with economic instability, has a major impact on the manner in which company reorganisations are managed.
2. Attraction of talent and development of human capital
In an increasingly competitive and selective market, it is crucial to be able to rely on expert and motivated resources who are capable of meeting the challenges of the sector. It is also important to manage the risk of a lack of interaction and the proper organisational balance.
3. Engagement of employees and promotion of a shared culture
Boosting employee motivation and commitment to achieve objectives is important in order to maintain a common and shared corporate vision.
4. Human rights, diversity, inclusion and equal opportunities
The highest international standards require the utmost respect for diversity, in its various meanings, non-discrimination and equal opportunities.
5. Fair remuneration and incentives
A remuneration system based on internal fairness, competitiveness, consistency and meritocracy, by directly linking commitment and recognition of merit, allows long-term value creation at all levels of the organisation.
Topics relating to responsible management
6. Transparency in business management
In a context where it is increasingly easy to access information and the rate of its dissemination is ever faster, transparency in conducting business is an essential condition for building long-term relationships of trust.
7. Prevention of corruption
In a trust-based industry such as the banking sector, the promotion of business ethics and the prevention of corruption play a fundamental role in protecting a company's reputation and credibility, business efficiency and fair competition.
8. Responsible personal data management (data security)
The quantity and quality of personal data available today require diligent and professional management to ensure data confidentiality.
17. Greater regulatory complexity
At Italian and European level, increasingly stringent regulatory obligations, affecting various areas of interest, are being introduced.
15. Dealings with business partners
In a context where customers use multiple channels to proactively gather information and often prefer a direct interaction with their Financial Advisor, relationships with business partners are key in the provision of services.
12. Engagement and development of communities
The development of the communities in which we operate is related to the business, but also to the activities and exchanges that take place with enterprises, associations and other organisations located in the area.
Topics relating to customer management
9. Quality of customer experience
An essential feature of the relationship with the customer is the ability to offer a unique and distinctive experience, maintaining and strengthening the trust on which the key moments of the relationship are based.
10. Long-term protection of customers' household wealth
The relationship that our Financial Advisors establish with their customers must allow them to offer investment solutions that preserve the value of household wealth over time and provide for generational transfer with products/services able to seize market opportunities without suffering market volatility excessively.
11. Consumers’ financial education
The growing production of regulations, the distinctive nature of insurance and financial products and the uncertainty of market dynamics require training/educational schemes to be disseminated to raise customer awareness.
13. Development of products and services
Customer needs and requests are constantly changing and evolving in response to the possibilities offered by technology.
14. Business innovation for the digital customer
The internet and mobile technology continue to spread and consumer attitudes are changing.
16. Responsible investments (ESG investing)
The environmental, social and corporate governance (ESG) dimension of investments is becoming increasingly important for future sustainable development.
Environmental topics
18. Climate change and natural disasters
Climate change is already taking place and natural disasters are on the rise, representing a serious threat to the world economic development. In this scenario, climate risk mitigation and compliance strategies are key factors in boosting the resilience of communities at global level.
Dialogue with Stakeholders
We acknowledge as our stakeholders all those who contribute to achieving our goals, influencing our activities and allowing us to compete on the markets.
Stakeholders may be classified as follows:
- Direct stakeholders: employees, financial advisors and shareholders who, for different reasons, are part of the Group structure;
- Competitive stakeholders: Clients and contractual partners who, in their capacity, have an impact on business results;
- Social-environmental stakeholders: the community, the environment and the financial community — the external context in which the Bank operates
An awareness of the central role played by our stakeholders in the process of sustainable growth has led us to engage in various forms of dialogue and discussion with them.
Institutions, businesses, media, NGOs and other organisations, opinion leaders, professional associations, non-profit organisations and the welfare industry
- Local conventions on financial education
- Press conferences
- Company points of contact dedicated to media and institutional relations
- Meetings with institutions and NGOs
- Multi-stakeholder meetings
- Website and mobile apps
- Social activities, including in favour of community
Shareholders, investors, analysts and proxy advisors
- General Shareholders’ Meeting
- Media news
- Meetings and interviews with analysts, investors and proxy advisors
- Company points of contact and digital tools dedicated to relations with financial investors
- Digital channels and social media
Suppliers and strategic partners
- Meetings with the Bank and Networks
- Working groups on common projects
- Participation in local meetings
- Media
- Events
Employees and their families
- Engagement survey (every two years)
- Individual performance evaluation interviews and joint determination of development goals
- Roundtables with unions and workers' representatives
- Portal, newsletters, and house organ
- Annual meeting with all employees
- Events and initiatives
- Internal meetings and cascading initiatives
- Outdoor training sessions
Customers, customer households and consumers
- Surveys on the level of satisfaction
- Market researches
- Dialogue with consumer associations
- Communications channels devoted to customers (website, e-mail, toll-free phone number)
- Media
- Dedicated events
- Advertising campaigns
- Periodic documentation and in-depth reporting
- Social support activities
- Social media