With the update of the Group's Risk Management Policy in 2019, ESG risks have been integrated into the ERM Management Framework.

The Policy details seven main areas of ESG risk, including climate change, to which primary attention is paid and which is managed along the value chain, in particular with reference to underwriting and investment activities.

The cross-departmental ESG Risk Table, an operating work group that includes the Sustainability, Risk Management, Audit and Compliance Departments, has defined a detailed map of risks associated with climate change, as follows:

Type of risk Risk Theme identified by the materiality matrix

Main regulatory and strategic controls in place

Climate change and loss of biodiversity - physical risks

Increase in technical risk and credit risk due to the increase in the frequency and seriousness of claims related to climate change consequences (acute and chronic physical risks) and of biodiversity loss, including pandemic events

Time horizon: medium term  (1)

Actions for adaptation and mitigation of climate change

Solutions that encourage socially responsible and sustainable behavior

  • Sustainability Policy
  • Risk Management Policy
  • Reinsurance Policy and additional risk mitigation techniques
  • Operational Risk Management Policy
  • Business Continuity Policy
  • Business Continuity Plan
  • Guidelines for assuming credit risk
  • Underwriting Policy – Non-Life and Life Businesses
  • Reserving Policy – Non-Life and Life Businesses
  • 2019–2021 Strategic Plan, “Technical Excellent Evolution” and “Shared Value and Sustainable Development” Directives

Lack of insurability of climate-related risks due to the poor resilience of society

Time horizon: medium term (1)

Actions for adaptation and mitigation of climate change

Damage to the Group’s property and assets, and business continuity risk for the Group’s sites and agencies / Damage relating to the disruption of the supply chain (operational risk)

Time horizon: medium term (1)

Actions for adaptation and mitigation of climate change

Climate change and loss of biodiversity - transition risks

Decrease in the value of the investment portfolio in relation to businesses that do not meet expectations in terms of the transition towards a sustainable and low carbon economy (financial risk)

Time horizon: medium term (1)

Actions for adaptation and mitigation of climate change

• Sustainability Policy
• Risk Management Policy
• Investment Policy - Business Continuity Plan
• Underwriting Policy – Non Life and Life Businesses
• Integrated Reputation Management system
• 2019–2021 Strategic Plan, "Shared Value and Sustainable Development" Directive

Negative impact on Group reputation due to the underwriting of insurance contracts and investments in companies whose transition to a low carbon economy is deemed insufficient by stakeholders (reputational risk)

Time horizon: short term (1)

Contribution to sustainable development in the different spheres of influence (investments, customers, suppliers)

As regards the time horizon for risks related to climate change:
• Short term corresponds to the time horizon of the business plan and therefore operational and financial planning;
• Medium term corresponds to the time horizon of the Unipol Group’s Reputational & Emerging Risk Observatory, for the identification of external risks and opportunities that could have an impact on the business model and corporate strategy; 
• Long term corresponds to the period up to 2050, one of the main tipping points outlined in the special report of the IPCC (2018) and in the latest strategy of the European Commission “A clean planet for all”, 2018). It therefore corresponds to the time horizon set to achieve the main targets to keep the temperature rise below 2ºC (such as carbon neutrality).


The Group integrates the safeguards of ESG risks, including climate change, within the individual categories of current risk, so as to manage them at all stages of the value-creation process and to mitigate the onset of any reputational risks related to ESG risks. These safeguards are also designed to prevent the concentration of exposures to areas and/or sectors that are significantly exposed to ESG risks.