Livio Gentilucci
Head of Active Ownerhsip
Active Ownership
By leveraging our active ownership capabilities, we aim to seize the best investment opportunities to build more resilient portfolios with better risk-adjusted returns on long-term investments for our clients.
Our approach
Our main objective is to promote sustainability practices and good governance within our investee companies. This is done by way of active engagement and participation at general meetings and through cultivating a trusted relationship with the companies we invest in.
Generali Asset management acts on two levels:
VOTING ACTIVITY
ENGAGEMENT WITH COMPANIES
2024 Overview of Engagement activities
Voting figures
SHAREHOLDERS MEETINGS
RESOLUTIONS VOTED
COUNTRIES COVERED
NEGATIVE OPINIONS
Engagement
SUCCESSFUL ENGAGEMENTS
ENGAGEMENTS WITH ADDITIONALITY
78
Engagements
Governance 24%
Environment 49%
Social 37%
Direct 53%
Collaborative 47%
3 pillars of impact engagements
1 - Preparation lever: Focused preparation to create added value with finetuned expectations
We try to reach a level of knowledge and expertise that will allow us to create a trust relationship with the investee company. We strive to involve all internal actors who interact with the company to be able to define an internal view and deliver a coherent message to each interaction. The result of this iterative process is the identification of added-value expectations which are potentially useful to the business of the investee company.
2 - Relationship lever: Building a trust relationship to create common added value via negotiation
The second pillar is the creation of a partnership relationship with the company. The biggest added value comes from negotiating a priori irreconcilable point of view. This requires a lot of listening, creativity and a spirit of innovation, without giving up the spirit of the initial expectation. The result of this step is the definition of a concerted plan with the company to address expectations.
3 - Coalition lever: Creating or leading a coalition of investors (when possible or relevant)
The third pillar is the creation or the leadership of a coalition of investors. The best timing to activate this tool is once we have defined a framework with the company. This avoids the pitfall of the “lowest common denominator” effect. Finally, we ensure that the governance of this collaborative initiative is clear in terms of duties (efforts) and rights for the investors.
Enel: a successful case study
In June 2023, a group of investors, members of the Italian Sustainable Investment Forum (ItaSIF – Forum per la Finanza Sostenibile*) and a select group of Climate Action 100+** investor signatories, developed three expectations for Enel.
Disclose the coal phase out strategy (high level principles);
Disclose a road map that defines milestones plant by plant;
Disclose the context and constraints applying to coal plants in Italy and Spain.
As a result of the engagement with this group of investors led by Generali AM and Kairos Partners, Enel has published a dedicated coal section in its 2023 Sustainability Report, including:
The reiteration to phase out coal by 2027;
The previous trajectory of coal capacity since 2015;
A detailed roadmap for each of the remaining coal plants;
A detailed process which ENEL follows to close a plant.
All parties acknowledged the progress Enel has made in disclosing its Net Zero strategy in general, including a deep dive into its plan to phase out coal generation.
*The Italian Sustainable Investment Forum (ItaSIF) is a multi-stakeholder, non-profit association founded in 2001. Members are not only financial operators, but also civil society organizations involved in the environmental and social impact of finance. ItaSIF has more than 170 members among asset managers, banks, insurance companies, pension funds, NGOs, and other organizations.
**Climate Action 100+ is an investor-led initiative, which aims to ensure the world’s largest corporate greenhouse gas emitters take action on climate change.
Active Ownership team
François Humbert
Lead Engagement Manager
Reports*
GenAM Active Ownership Report 2024
GenAM Active Ownership Report 2024 | Annex I
GenAM Active Ownership Report 2024 | Annex II
GenAM Engagement Policy
GenAM Quarterly Proxy Voting records 2024
* Kindly note that on 1 January 2024, Generali Investments Partners S.p.A. Società di gestione del risparmio ("GIP") has been merged by incorporation into Generali Insurance Asset Management S.p.A. Società di gestione del risparmio ("GIAM"), changing its name to Generali Asset Management S.p.A. Società di gestione del risparmio ("GenAM"). The above disclosed documents thus refer to the sum of the two entities at the reference date, until such time as the new documents of Generali Insurance Asset Menagement S.p.A. Società di gestione del riparmio renamed as Generali Asset Management S.p.A. Società di gestione del risparmio will be provided.
