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Responsible Investments

Among the different financial services, we also promote sustainability-oriented investments and support our clients in building portfolios that take their ESG (environmental, social and governance) preferences into account.

The three pillars of ESG

Environment, society and governance: these three pillars are the source of the acronym “ESG” (environmental, social and governance), which encompasses three different approaches to sustainability-oriented investments.

The first pillar — the environment — refers to themes relating to reducing pollution and rationalising waste. The second —the social — relates to gender policies, human rights, labour standards and relationships between productive enterprise and the community in which it operates. The third — governance — has to do with sound governance practices for companies and virtuous behaviour by businesses in the area of legal compliance and business ethics.

In pursuit of these goals, we promote sustainable investments and stand shoulder to shoulder with our customers in building ESG portfolios.

Our policies for responsible investments

In keeping with the objective to foster the transition to sustainable economic development models and create long-term value, we have adopted specific policies focused on responsible investment.

Our policies comply with the commitments undertaken through our signing of the United Nations Principles for Responsible Investment (PRI) and the Global Compact Principles by the Banca Generali Group and define the approach for the  consideration of ESG risks into investment processes and, where applicable, the potential negative impacts on the sustainability factors of an investment with regard to customer portfolio management, financial advice services and management of the Bank's proprietary portfolio.

As matter of fact, we believe that complementing traditional analyses with a consideration of sustainability risks and adverse impacts of investment decisions in terms of ESG factors is fundamental for an increasingly complete understanding of the context in which we operate, better informed assumption of the risk to which we might be exposed due to such investment decisions and, ultimately, a better ability to respond to market requirements, starting with the protection of investment value.

This is also the rationale for our Policy on Conflicts of Interest Management, an additional tool for implementing responsible investment strategies: proper, transparent management of conflicts of interest contributes to creating our sustainable banking model and establishing long-term relationships with our clients, shareholders and other stakeholders.

Furthermore, in accordance with Law No. 220 of 9 December 2021, we have implemented appropriate safeguards based on a risk-based approach and the principle of proportionality, in line with the prohibition on financing companies directly involved in the production of cluster munitions, anti-personnel mines and/or biological/chemical weapons. These safeguards apply uniformly to all products offered, distributed, or subject to advisory services by the Banca Generali Group

How the responsible investment process works

We have adopted procedures and methods that integrate the investment analysis conducted according to traditional financial criteria with an analysis focused on sustainability risks and potential negative impacts of investments on sustainability factors.

Our approach is based on negative screening and the consequent exclusion (so-called Restricted List) – total or partial – of exposures to companies operating in controversial sectors (e.g., tobacco, tar sands, coal) or exhibiting controversial behavior (e.g., companies involved in serious and/or systematic violations of the United Nations Global Compact or the OECD Guidelines).

The sectors and controversial behaviors are described in detail in Banca Generali’s Sustainability Policy, which is updated from time to time and available at the following link.

Furthermore, for Banca Generali Group products and services classified under Articles 8 and 9 (UCITS and Portfolio Management Lines), financial instruments are selected on the basis of an ESG score. This indicator, provided by a leading data provider, measures on a scale from 1 to 5 the ability of both corporate and sovereign issuers to manage ESG risks relative to their peers.

In particular, for the Article 8 Portfolio Management Lines, three new monitoring indicators have been introduced, namely Environmental, Social and Governance, aimed at ensuring a more transparent and detailed assessment of ESG performance.

The scores, expressed on a scale from 1 to 5, assess the following aspects at the Portfolio Management Line level:

  • E Score: environmental strategy, supply chain, products and production processes;
  • S Score: human rights, community responsibility, human resources, and relationships with customers and suppliers;
  • G Score: governance structure, shareholder relations, accounting practices, and business ethics.

Regulation (EU) No. 2019/2088 has introduced disclosure obligations on the integration of sustainability risks and the consideration of adverse sustainability impacts in investment processes: for further information, visit the page with Banca Generali's information on sustainability in the financial services sector.

Active Ownership Strategy

With a view to strengthening the integration of sustainability factors into the investment process of managed portfolios and to encouraging investee companies to adopt sustainable business policies and good governance practices, Banca Generali has adopted an Active Ownership Strategy. With regard to the products related to the provision of individual portfolio management and collective asset management services classified under Articles 6, 8 and 9 of EU Regulation 2019/2088, established and managed by Banca Generali or its subsidiaries, defines: 

  • a framework aimed at identifying the procedures for exercising voting rights and the related policies
  • the engagement procedures to be adopted with corporate issuers or managers
  • the roles and responsibilities of the various corporate functions
  • the methods of managing any situations in which conflicts of interest may arise
  • the transparency commitments and methods for disclosing the results of the Active Ownership strategy.

Banca Generali applies a prioritisation approach to both engagement topics and engagement targets as part of its Active Ownership framework. Engagement priorities are defined on the basis of material sustainability issues identified as most relevant to the Banking Group, the financial sector and stakeholder expectations. These topics are periodically reviewed and updated to ensure alignment with evolving sustainability challenges and strategic objectives.

Engagement targets are selected considering the relevance of the investment, the significance of the ESG issue identified, and the opportunity to promote positive change through dialogue and stewardship activities. This approach enables the Bank to focus its engagement efforts where they are expected to be most effective in supporting long-term value creation and sustainable business practice.

Our Active Ownership strategy is defined within our Guidelines. Below you will also find our Active Ownership Report, detailing the activities carried out during 2025.

Investments in support of SDGs: measuring the positive contribution

We believe that private investors may also play an active part in implementing the international sustainable development agenda by financing, through their investment choices, companies that are committed to operating in a responsible and sustainable manner, with a positive impact on environmental, social, and organizational aspects.

We have thus developed a proprietary platform capable of providing an in-depth analysis of the level of sustainability of individual investment products, and of calculating the degree of alignment to the individual Sustainable Development Goals (SDGs) promoted by the United Nations, determining its positive contribution in tangible terms through the use of appropriate metrics.

Partnerships to promote responsible investment

Sustainable Finance Forum

We have been ordinary members of the Forum for Sustainable Finance (SBB) since May 2019. Born in 2001, the Forum for Sustainable Finance is a multi-stakeholder non-profit association: it includes financial operators and other organizations interested in environmental impact and social investment.

 

Eurosif

The Association promotes the knowledge and practice of sustainable investment, with the aim of spreading the integration of environmental, social and governance criteria into financial products and processes.

The Forum is a member of Eurosif, an association committed to promoting sustainable finance in European markets.


Principles for Responsible Investments
As Banca Generali Group we adhered at the end of 2022 to the Principles for Responsible Investments (PRI), promoted by the United Nations, in line with our Vision, to aim to be the first Private Bank in terms of Value of service, Innovation and sustainability.

Sustainability

Discover our transparency disclosure on sustainable finance