Intesa Sanpaolo Life DAC, as part of the Intesa Sanpaolo Vita Insurance Group, has signed the Principles for Sustainable Insurance (PSI) and acknowledges that the integration of ESG factors (Environmental, Social and Governance) in its investment process to be of crucial importance, recognizing that these factors, in addition to fostering sustainable economic and social development, can have a positive impact on clients' financial returns, while also reducing their risks. As described in the Insurance Group Sustainability Policy, it is expected that issuers committed to integrating these ESG factors into their investment strategy could generate sustainable profits over time and, consequently, create value for all stakeholders.
In its Sustainability Policy, Intesa Sanpaolo Life DAC has defined the following guidelines to promote its responsible and sustainable business model:
Environmental: Intesa Sanpaolo Life DAC is committed to promoting and raising awareness of its responsible and sustainable business model, with particular focus on climate change, including the consideration of ESG factors in its business practices, the reduction of its direct and indirect environmental impacts, conscious use of natural resources and adequate waste management.
Social: Intesa Sanpaolo Life DAC is committed to protecting and developing its people, through actions that ensure the well-being and equal opportunities for all its employees and clients, always taking into account their needs and requirements, through the development of high quality products and services, and efficient delivery in the locations in which it operates.
Governance: Intesa Sanpaolo Life DAC is committed to adopting business ethics and good governance practices, with a particular focus on business integrity and transparency, and increasing internal awareness and promotion regarding ESG factors.
Sustainability risks are defined as risks associated with an environmental, social or governance event or condition that, if materialized, could cause a significant actual or potential negative impact on the value of the investment.
To integrate ESG factors into its investment decisions, the Company adopts the following ESG investment criteria:
- exclusion from the investment perimeter of companies and issuers operating in not socially responsible sectors;
- monitoring of critical issuers with a high exposure to ESG risks, determined on the basis of specific standards;
- monitoring of the engagement and voting activities carried out by the Delegated Managers.
The investment funds managed by third-party investment companies are excluded from these criteria, although ESG factors are taken into account in the selection of the investment funds.
In the case of instruments issued or guaranteed by a State member of the European Union, by its local authorities or by international public entities composed by a Member States of the European Union, Intesa Sanpaolo Life DAC considers them compliant with the ESG criteria.
The governance of ESG issues in investment processes is attributed to the Finance and Actuarial Area. In addition, ESG issues are discussed within the Investment Committee, which performs an advisory function.
The Risk Management function is responsible for ensuring compliance with the investment limits as approved by the Investment Committee, and the Compliance function is responsible for ensuring the monitoring of the risk of non-compliance with the rules, in particular ensuring the compliance of Company products and processes to current regulations and providing the necessary support to internal structures.
The Company, part of the Intesa Sanpaolo Vita Insurance Group, has started a process for the definition of due diligence policies to identify, assess and prioritize principal adverse impacts of investment decisions on sustainability factors and plans to complete these activities by June 2021.