Enel and its reinsurance company, Enel Insurance, have launched a new insurance program indexed to sustainable targets as part of the 2020-2021 insurance renewals. The policy, made possible by the support guaranteed to the initiative by Allianz, Axa and Generali, covers all the activities of the Enel group.
“It's about the first program in the world in the insurance panorama that it incorporates and integrates sustainability criteria such as the United Nations Sustainable Development Goals (SDGs)," the company underlines in a statement.
In this case, the program called "Property All Risk SDG Linked" takes the SDG 7 "Affordable and Clean Energy" indicator as a reference. The cost of the insurance premium will therefore be linked precisely to the group's ability to achieve by the end of 2021 55% of the total installed capacity with renewable sources. An independent advisor will certify that the objective has been achieved.
“The placement of the first insurance program in the world linked to sustainability objectives is further proof of Enel's commitment towards full integration of sustainability into every strategy and activity of our business, as well as the growing interest from the financial and now also insurance of sustainable financial products,” he said the CFO of Enel, Albert DePaoli. “There is a clear link between sustainability and value creation, since by investing in environmentally and socially sustainable projects, companies can maximize profits and minimize risks, while contributing to the achievement of the SDGs. We are confident that companies will increasingly adopt this model, directing their activities towards a global strategy that puts sustainability at the heart of their business decisions.”
The insurance initiative was carried out with the support of the broker Marsh and the insurance companies Allianz Global Corporate & Specialty, Axa XL, Generali Global Corporate & Commercial Italia and Mapfre.
It should be emphasized that this insurance program is not the first project of the company led by Francesco Starace linked to sustainable finance. Last year Enel issued General Purpose Bonds linked to the achievement of the SDGs, while in 2020 the range of instruments linked to sustainability was expanded with loans and revolving credit lines linked to the achievement of the SDGs.
