Second-Party Opinion Download

Sustainalytics is of the opinion that Generali’s Green Insurance-Linked Securities Framework is credible and impactful and will deliver overall positive environmental impacts. Sustainalytics is further of the opinion that the principles of impact and transparency that underlie the green and responsible investment industry, as well as many of its norms and standards, are applicable to green insurance-linked securities, and that insurance-linked security (ILS) issuances under this Framework align with those principles. This assessment is based on the following:

IMPACT

Sustainalytics views the primary impact of the green ILS to be the holding of green assets (notes), as these are tied to the financing of projects that deliver overall positive environmental impacts. A secondary impact mechanism described in the ILS is related to the use of the freed-up capital from the transaction to invest in green projects and support insurance products linked to green activities. The eligible categories for the investment of collateral and the use of freed-up capital – green buildings, renewable energy, energy efficiency, clean transportation, sustainable water management, recycling, re-use & waste management – outlined in Generali’s Insurance-Linked Securities Framework are in line with thematic categories prevalent in the sustainable finance market. Investing the ILS collateral in notes which in turn finance projects in these areas, as well as the use of freed-up capital to finance eligible assets and supporting insurance products in these areas, is anticipated to deliver net positive environmental outcomes and advance various UN Sustainable Development Goals.

TRANSPARENCY

Generali’s internal process of evaluating and selecting projects, procedure for management of funds and proceeds, and approach to reporting on allocation are aligned with market practice. It has set up the Green ILS Committee to oversee the selection and monitoring of the pool of Eligible Projects. Generali will monitor and track funds through its internal accounting and risk management procedures and will aim to reach full allocation within one year. Unallocated capital will be temporarily allocated and/or invested in cash, deposits or money market instruments. The Group plans to prepare an annual report until full allocation and will prepare impact reporting for the six eligible categories. Impact reporting includes relevant quantitative KPIs, including GHG emissions avoided.