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.
Aware of its role, Intesa Sanpaolo considers the integration of ESG factors into its investment process of fundamental importance, in the belief that these elements, as well as promoting economically and socially sustainable development, can contribute positively to the financial results of customer portfolios, while at the same time reducing their risks.
The European Union has also adopted a series of measures to direct capital flows towards sustainable investments so as to integrate sustainability into risk management and to promote transparency and longterm vision in economic and financial activity, such as the Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation): this represents a further stimulus to reinforce the commitment of the Group to act as a responsible player in global change, also through the increasingly well-structured offer of sustainable investments and the availability of insurance solutions for the protection of customers, in line with European plans and regulations.
In 2021, the Group Companies started to bring their policies, roles and responsibilities, processes and reporting into line with the SFDR regulations.
Also in 2021, the Intesa Sanpaolo Group confirmed its leadership in sustainable investments. With 29 new products, the Group has reached a total of 180 funds that promote environmental or social characteristics (among others) or that have sustainable investment objectives, classified according to Articles 8 and 9 of the Sustainable Finance Disclosure Regulation, for an equity of over 113 billion euro, representing about 35.7% of the total assets of the Funds managed.
To bear witness to its awareness of its own active role in combating climate change, in November 2021 Intesa Sanpaolo announced to have joined, through Eurizon Capital SGR, Fideuram Asset Management SGR and Fideuram Asset Management (Ireland), to the Net Zero Asset Managers Initiative (NZAMI).
Eurizon and Fideuram – Intesa Sanpaolo Private Banking Division are the only Italian asset managers who signed up to the NZAMI in 2021.
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.
Customers' interest in sustainable investments has grown in recent years also thanks to the impetus of the European institutions that, on 11 December 2019, presented the European Green Deal, that is, a series of measures aimed at making energy production and the lifestyle of European citizens more sustainable and less harmful to the environment with the aim of transforming the EU into a climate-neutral society by 2050.
Intesa Sanpaolo Group is aware that it has a significant impact on this front as well. In particular, in providing advice, the Bank plays an important role in informing clients about financial products with sustainable investment characteristics or objectives.
This context includes information on the adverse impacts on sustainability factors and on the management of sustainability risk in the provision of investment advisory or insurance distribution services.
This document applies to the activities and business processes of defining the catalogue of financial products subject to advice and summarises the Bank's policies on the integration of Sustainability Risks and information on the negative effects on sustainability in the provision of the advisory service.
EURIZON CAPITAL SGR
Eurizon Capital, offers investors a wide and diversified range of funds that integrate sustainability risks into their investment choices and as of 31/12/2021 it boasted assets of over 110 billion euro in funds that promote environmental or social characteristics, among others, or that have sustainable investment objectives, classified according to Articles 8 and 9 of Regulation (EU) 2019/2088 (SFDR), which represent about 46% of the assets managed in UCITS by the company.
The merger by incorporation of Pramerica SGR Spa became effective from 1 July 2021, at the conclusion of an integration process aimed at enhancing synergies and common objectives in the field of sustainable investments.
With the signing in 2015 of the PRI (Principle for Responsible Investments) of the United Nations, Eurizon Capital has shown over the years particular attention to the policies implemented by the issuers in which it invests, in the belief that corporate governance policies and practices, which incorporate environmental aspects, and correct governance, are able to create value for all stakeholders in the long term.
In 2021, Eurizon adopted a Sustainability Policy that describes the methods for selecting and monitoring financial instruments adopted by the asset management company; the methods provide for the application of specific processes for selecting financial instruments, suitably graduated according to the characteristics and objectives of the individual managed products, which take into account ESG factors and SRI principles, in line with well-defined Strategies.
In 2021, Eurizon also published its first Sustainability Report, which illustrates the actions taken by Eurizon Capital SGR in implementation of the “Sustainability Policy” and the “Commitment Policy” and traces the experience of the Asset Management Division on sustainability issues over the last 25 years.
To strengthen its control over the sustainability of its investments, Eurizon is assisted by three 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 Financial, Credit and Operational Risks Committee is a joint body aimed at monitoring the exposure to risks of managed products: The Committee monitors the results from analyses of the impacts of sustainability risks on financial products with the support of the Risk Management Function and monitors any actions used to mitigate the negative effects associated with investment decisions.
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
In 2021, the companies subject to ESG engagement were up (+40%) compared to 2020, confirming Eurizon’s strong commitment to sustainability issues and the effectiveness of the active ownership engagement instrument; 644 companies were involved in engagement activities; among these, 240 (approximately 37%) were involved in engagement on ESG issues. In particular, in 2021 Eurizon conducted 287 engagement activities on ESG issues, which represent 30% of the total (958 engagement activities) of the engagement activities for the entire year.
In 2021, Eurizon Capital SGR took part in 160 shareholders’ meetings of select companies listed on Borsa Italiana (56% of the total) and the international markets (44%), voting on 1,773 resolutions on the agenda.
Under Regulation (EU) 2019/2088 (SFDR), at the end of 2021, the assets of the UCITS (Undertakings for Collective Investment in Transferable Securities) offered according to Articles 8 and 9 amounted to approximately 110 billion euro, representing a total of 46% of the assets managed in UCITS by Eurizon; in particular, the assets of the products categorised as Article 8 amounted to approximately 107.8 billion euro and the assets of the products categorised as Article 9 to approximately 2.8 billion euro.
The number of products managed according to these criteria is 172 (23 of which were launched in 2021) - considering the individual placement windows - referring to 32 different investment strategies.
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. At the end of December 2021, the fund’s assets amounted to over 2.4 billion euro.
Thanks to Eurizon Fund Absolute Green Bonds, Eurizon was ranked first at the ESG Investing Awards 2022, in the Best ESG Investment Fund category and also received an award at the MainStreet Partners “ESG Champions” 2022.
Following the absorption of the Regulation (EU) 2019/2088, the entire investment process of the Company, also with reference to institutional mandates, has been adjusted in order to take ESG criteria into account in investment choices. In particular, all mandates comply with exclusion criteria both with regard to SRI themes (with reference to issuers operating in non-socially-responsible sectors) and ESG themes (issuers considered critical with low ESG scores). A specific ESG report is regularly produced on a large number of mandates (45 mandates, 8.7 billion euro managed and a total of 27 customers), indicating the positioning of the portfolio with respect to the reference benchmark. In addition, Eurizon manages 14 mandates relating to 11 customers for approximately 2.9 billion euro on which specific investment restrictions are implemented and/or support is provided to customers in the engagement and corporate governance activities.
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.
During 2021, as part of the Funds à la carte offer, four new funds were developed based on sustainability, three of which were classified under Art. 8 and one under Art. 9. The Fideuram Group ESG offer consists of 8 funds, seven of which classified under Art. 8 and one under Art. 9 of the SFDR Regulation, for a total of AUM as at 31 December 2021 of 2.6 billion euro, representing about 3% of total assets in the managed Funds.
- 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.
The acceleration required by regulators and civil society towards transformation to a more sustainable economy led the Division to further intensify the development of its approach to sustainability by launching the ESG Programme in June, an ambitious project that involves all areas of the Division and aims to integrate sustainability into all aspects of managing its business and operations.
Within the Division’s Steering Committee, a Sustainability session (ESG) has been established that defines strategic actions and initiatives in the field of sustainability, also with respect to the guidelines of the ESG Control Room and in line with the principles of the Group’s Code of Ethics.
The Division’s product Companies, Fideuram Asset Management SGR and Fideuram Asset Management (Ireland) continuously assess the possibility of joining collective sustainability initiatives, in line with the ESG principles promoted by the Division. To this end, during 2021 they joined the UN Principles for Responsible Investment and the Net Zero Asset Managers Initiative.
Last updated 5 July 2022 at 13:21:55