The three companies of Intesa Sanpaolo group active in wealth management have set targets for 2030 and 2050 regarding the reduction of net zero emissions (Net Zero Emissions) emissions of their managed assets.
These are the Sgr Eurizon Capital Fideuram Asset Management with Fideuram Asset Management Ireland dac who have determined the targets for the Net Zero Asset Managers Initiative and Intesa Sanpaolo Vita Insurance Group who set goals for the Net-Zero Asset Owner Alliance.
Four children areas of action for the group's asset management companies - the first in Italy to communicate data - including the commitment to increase investments in eco-sustainable activities. Eurizon is at the forefront of investment in green bonds
Net Zero: Eurizon and Fideuram the first in Italy to supply targets
The initiative nzami (Net Zero Asset Managers Initiative) launched in December 2020, has over 200 signatories representing over $57 trillion in assets under management. It is made up of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or earlier, in line with efforts to limit global warming to 1,5 degrees Celsius, and to support investments in line with this objective. The progress achieved must be reported in the TCFD Report, drawn up according to the Recommendations of the Task Force on Climate Related Financial Disclosures. NZAMI is a partner of “Race to zero”, a campaign led by United Nations which brings together a coalition of initiatives (representing 733 cities, 31 regions, 3.067 companies, 173 major investors and 622 higher education institutions) committed to achieving net-zero emissions by 2050 at the latest. “Companies of Asset Management of the Intesa Sanpaolo Group they are the first Italian asset management companies to disclose their Net Zero targets” says a note from Intesa.
Goals, approved by individuals boards of directors of the companies of the San Paolo Group, follow the publication – in the headquarters of Industrial Plan 2022-2025 – the 2030 objectives for the reduction of financed emissions relating to the main emission-intensive sectors, attributable to accession to the Net Zero Banking Alliance.
Furthermore, following the adhesion to the Net Zero initiatives announced at the end of 2021, the wealth management companies of Intesa Sanpaolo have undertaken to publish their interim commitments, aimed at achieving by 2050 the neutrality of the net greenhouse gas emissions of the managed assets.
Four areas of action for the Net Zero asset Manager
Asset Level Alignment Targets, with which the asset managers undertake to identify the share of the asset, defined Portfolio in Scope1, which will be managed with the aim of achieving climate neutrality by 2050. From your own studies Eurizon acquired a Portfolio in Scope equal to 67,5 billion euros, equivalent to 15,39% of its AUM (assets under management) as at 31 December 2021. In the same period, the Portfolio in Scope of Fideuram Asset Management is equal to 7,9 billion euro, equivalent to 13,86% of its AUM, while that of Fideuram Asset Management Ireland stands at 13,1 billion euro, equivalent to 29,79% of its AUM.
Portfolio Level Reference Target, which represents i intermediate milestones 2030 on the Portfolio in Scope. The asset management companies Eurizon2 , Fideuram Asset Management and Fideuram Asset Management Ireland3 , have expressed the ambition to reduce by 50% by 2030 financed emissions - expressed in terms of intensity - compared to the baseline year (2019), as required by the IPCC (Intergovernmental Panel on Climate Change), also through investment in climate solutions and stewardship & engagement activities.
Stewardship and Engagement Target, which provides for a commitment to establish solid interaction plans with investee companies focused on encouraging them to implement effective decarbonisation paths.
In this area Eurizon sets the goal of contacting 48 companies (representing 70% of the issues financed by the Portfolio in Scope) by 2025 and a further 107 companies by 2029 (up to covering 90% of the issues financed) focusing on issuers belonging to the sectors considered “materials” for decarbonisation. Fideuram Asset Management estimated that it will have to take action with 53 companies by 2025 to achieve the goal of covering 70% of financed emissions and with 165 companies by 2030 (thus reaching 90% of financed emissions). Fideuram Asset Management Ireland, for its part, it will have to perform the same activity on 66 companies by 2025 (70% of financed emissions) and 195 by 2030 (thus covering 90% of financed emissions).
Investment in climate solutions, with which the signatories undertake to increase investments in environmentally sustainable activities. For the definition of this target Eurizon has considered the projects that can be financed by “green bonds”, the so-called Green Bonds, estimating that around 4% (1,53% at the end of 2021) of total AUM may be invested in Green Bonds by 2025. Fideuram Asset Management and Fideuram Asset Management Ireland estimate that, by 2025, respectively around 1 % and 4% of its AUM will be invested in projects financed by Green Bonds.
Three areas of action for the insurance sector
For Insurance Group Intesa Sanpaolo Vita, the intermediate objectives in the NZAOA are divided into the following three areas of action:
1) Sub-Portfolio: reduction of emissions on "Direct Investments" - for the "Listed Equity" and "Publicly Traded Corporate Bond" asset classes - equal to 50% of the "Carbon Intensity by EVIC" by 2030, compared to December 2021 as the baseline year. The AUM subject to the target, as at 31 December 2021, amounted to 19,6 billion euros.
2) Commitment: bilateral comparisons with the most relevant issuers – i.e. the “Top 20 Emitters”, which account for around 70% in terms of emissions of the Scope Portfolio of the Insurance Group – with the ultimate aim of evaluating, discussing and enabling the respective paths and decarbonization strategies. The Group will also cooperate with NZAOA by providing contributions aimed at drafting collaborative position papers on related topics.
3) Financing the Transition: commitment to report annually to NZAOA on the amount of investments in support of the "green" transition ("Climate Solution Reporting"). As at 31 December 2021 there were investments to support the transition equal to approximately 5% of the Group's Scope Portfolio (Direct and Indirect Investments). Furthermore, the Group will contribute to one of the "Financing the Transition" working groups to promote the development and awareness of new "green" investment solutions, reporting standards and any new methodologies on similar topics.
The Intesa Sanpaolo Vita Insurance Group joined the Net Zero Asset Owner Alliance (NZAOA) and the Net Zero Insurance Alliance (NZIA) last year. The NZAOA and NZIA bring together 61 international institutional investors and 15 of the world's leading insurers and reinsurers respectively, all committed to bringing their investment and underwriting portfolios to net zero greenhouse gas emissions by 2050, in line with a maximum temperature increase of 1,5°C above pre-industrial levels by 2100
