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 37 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. He 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, whether they are 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). In terms of actively managed funds, specialized ESG products were made which use an appropriate and specific internal rating system, and ethical products with specific benchmarks.
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 (37 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.
In the area of sustainable investments, Fideuram Intesa Sanpaolo Private Banking offers its customers four different products:
- Fonditalia Ethical Investment. Initially proposed as a flexible bond, then expanded its mandate to include the equity segment and the use of third-party funds. The investment decision-making process combines principles of environmental and social responsibility (ESG) at an overall portfolio level with the goal of producing clear and measurable positive impacts for people and the environment at an individual investment level
- Fonditalia Millennials Equity: it invests in equity instruments, mainly issued by companies with a clearly defined business model, to fully capture the consumer habits of the Millennials ( who are particularly conscious of ESG topics). The investment decision-making process integrates the financial analysis with that of sustainability on the basis of specific criteria, first of all the exclusion of companies that do not respect the principles of the UN Global Compact and whose revenues partially derive.
- GP Ego Sustainable: new line of the Fideuram Omnia Asset Management range which, in addition to financial return objectives, also produces social and environmental results by investing in the markets with a responsible approach
- GP Mix Sustainable: involves an investment process aimed at identifying financial instruments using not only financial and economic criteria, but also specific sustainability assessments. The evaluation of countries and sectors is subject to criteria that recognize their contribution to the positive development of society and to the protection of the planet.
Last updated 24 April 2020 at 09:57:13