Through their investment policies, large institutional investors and credit institutions increasingly have the ability to positively influence the development of corporate social and environmental responsibility.
The Intesa Sanpaolo Group positions itself at the forefront of this process in Italy: as part of our asset management activities, the social, environmental and good governance criteria of companies (the so-called ESG, Environmental, Social and Governance criteria) take on a growing importance in the evaluation of investments, also for the purpose of promoting balanced and sustainable development.
We are the first Group in Italy in the management of ethical and ESG funds, with a market share of almost 27% (Source Assogestioni, Quarterly Map of Managed Savings IV quarter 2019 (table 7)).
Our offer portfolio therefore includes funds that apply selection criteria consistent with the United Nations Principles for Sustainable Investment, with the aim of activating sustainability dynamics in companies and in customer choices.
EURIZON CAPITAL SGR
Eurizon Capital, the Group's Asset Management company, was the first in Italy, starting in 1996, to offer Ethical Funds and signed the PRI (Principle for Responsible Investments) in 2015. She is also a signatory of the CDP (Carbon Disclosure Project) and in 2014 has adhered to the Italian Stewardship Principles which define the procedures for exercising administrative and voting rights in listed companies.
Assets managed in ethical and ESG funds amounted to approximately € 8.2 billion at the end of 2019, with 39 dedicated products: 12 of which launched during 2019.
To strengthen its control over the sustainability of its investments, Eurizon is assisted by due structures: the SRI Committee (Sustainable and Responsible Investments) - within the SGR and supporting the Chief Executive Officer - and the Sustainability Committee, an autonomous and independent body that helps with the management of Ethical Funds, composed of personalities of recognized probity and morality and directs the management of Ethical Funds. The Committee is responsible for periodically monitoring the investment choices and the management strategy of these funds.
The ESG and SRI principles are applied to all actively managed funds, both benchmark or flexible ones (ESG criteria are not applied to passive/indexed products or investment solutions such as, for example, funds of funds and retail portfolio and unit-linked management). ESG specialised products are created as part of the active management funds.
The engagement process
With regard to critical issuers, the SRI Committee coordinates and implements what is called the "engagement process", ie active shareholding, which ranges from dialogue with companies to the activation of the right to vote at shareholders’ meetings. In 2019, Eurizon carried out 675 engagement initiatives with 515 issuers, with approximately 15% (102 initiatives with 77 companies) primarily related to ESG issues.
At the end of the engagement activity (18 months of monitoring), the process of disinvesting all securities (50 issuers) which did not provide proof of convincing actions that may have a short-term effect on the sustainability profile began at the start of 2019. For four issuers, the engagement activity was prolonged.
In terms of actively managed funds, 33 specialized ESG products were created and offered to the public.
To strengthen its commitment to sustainable investments, already in 2018 Eurizon Capital SGR initiated the management of the Eurizon Fund Absolute Green Bonds fund: an investment opportunity in international bond markets that makes it possible to finance products related to the environment, with diversification by issuer and by geographical area.
The range of products and services is completed with the management of three ethical funds, characterized by the a priori exclusion from the investable universe of all companies involved in activities considered unethical, such as nuclear energy, arms and tobacco.
All in all, the assets under management in funds meeting sustainable and ethical criteria (39 products at the end of 2019) amounted to over 8.2 billion euro (over 2.4% of the total and around 12% of Italian funds). In general, the performances of both ethical funds and funds managed with ESG criteria were negative due to the market’s own performance, with the results largely in line with the market or the reference benchmark.
In addition, Eurizon manages 15 mandates relating to 13 customers characterized by sustainability criteria, making for almost 3.5 billion euro. In particular, the services provided for these mandates concern the choice of ad hoc benchmarks, supporting engagement and corporate governance activities, and the creation of exclusion lists when selecting investments.
6.6 billion euros
1.6 billion eurosAssets under management in the area of ethical funds in 2019
FIDEURAM INTESA SANPAOLO PRIVATE BANKING
Fideuram Intesa Sanpaolo Private Banking specialises in offering advisory services to meet the financial, pension and insurance needs of Private customers and High Net Worth Individuals.
Within its range of sustainable investments, the Fideuram Group offers some products of its own, which stand alongside those created within the Intesa Sanpaolo Group by Eurizon. At the end of 2019, the total assets invested in these products amounted to over Euro 1.2 billion.
- Fonditalia Ethical Investment: set up in 2012, this flexible product invests in bonds, equities and third-party funds. The investment decision-making process combines principles of social and environmental responsibility (ESG) on the comprehensive portfolio level and aims to have positive impacts on people and the environment through its individual investments.
- Fonditalia Millennials Equity: set up in 2018, it invests in equity instruments issued by companies with a business model geared to successfully capturing the consumer habits of the Millennials generation, particularly sensitive to ESG issues. The investment decision-making process involves both financial analysis and sustainability analysis based on environmental, social and governance criteria.
- GP Fideuram/Sanpaolo Invest Omnia: since 2018, a number of solutions have been developed dedicated to responsible investment, combining financial performance objectives with those seeking results in the social and environmental field. In addition to the front line product GP Ego Sustainable, there were two new arrivals in 2019, GP Ego High Conviction 70 and GP Ego High Conviction 100, products in the Ego Active family featuring an exposure to companies whose business model complies with sustainability criteria. Furthermore, within the range of the Ego Personal products – the customised funds devoted to top-level clients – a number of solutions have been designed to comply with ESG principles, also developing keynote themes relating to concepts of sustainability and ethics.
- GP Mix Sustainable: it involves an investment process geared to selecting financial instruments, using not only financial and economic criteria but also specific assessments regarding sustainability. The evaluation of countries and industries is based on criteria that recognise their contribution towards positive social development and protecting the planet.
- Fondo Pensione Fideuram: in 2019, the investment process of the Fund’s equity segments (Balance, Growth and Value) was enhanced with an element of sustainability. More precisely, certain exclusion criteria were introduced to identify those business models which presumably have a negative impact on society because of their business sector or due to their failure to comply with the principles of the United Nations Global Compact, above all in the areas of human rights, employment, the environment and combating corruption.
- Fideuram Vita Orizzonte Responsabile: leading solution in the internal fund for sustainable investment as part of the Unit Linked Fideuram Vita Insieme policy. It is a flexible, multi-asset fund that invests solely in financial instruments classed as sustainable and responsible and selected through an investment process that requires the use of environmental, social and governance criteria (ESG). The fund’s portfolio is based on the GP Ego Sustainable product and invests in financial instruments featuring high standards in the management of environmental, social and governance components.
In 2019, Fideuram Asset Management Ireland dac and Fideuram Investimenti SGR obtained certification for their correct and coherent inclusion of environmental, social and governance (ESG) factors in the investment process of SRI (Socially Responsible Investment) products according to ISAE 3000 standards of the International Auditing and Assurance Standards Board. Above all, the recognition concerned the two Fonditalia funds and the GP Ego Sustainable management line.
Last updated 14 October 2020 at 16:25:47