Remuneration and sustainability

The Generali Group pursues a long-term growth objective, integrating sustainability into its core business and acting as a Lifetime Partner to its stakeholders.

Sustainability commitments represent a cornerstone of the Group’s business priorities, being fully integrated into the internal remuneration policy and incentive systems, with the aim of creating sustainable long-term value.

The variable component of remuneration is based on a meritocratic approach and a multi-year horizon and includes an annual cash component and a deferred equity component. These are based on a combination of sustainable business objectives with a direct link between incentives and the results achieved at Group, Business Unit, Country, functional and individual levels.

The objectives are predefined, measurable, and linked to the achievement of financial (risk-adjusted), economic, operational and non-financial results. In line with the Group strategy, the objectives take into account the risks undertaken and are assessed not only in relation to the achievement of predefined and measurable targets, but also considering the behaviours demonstrated in achieving them and their alignment with corporate values.

Within the Group incentive system, there is a strong focus on internal and measurable non-financial and sustainability KPIs:

- for the annual cash component of remuneration: the focus is on non-financial objectives, including sustainability parameters that reflect the foundations of the sustainability anchored to the Group Strategy – with priority on Country-level initiatives focusing on % YOY growth of climate insurance solutions – and supported by People – with priority on the upskilling index and % women in strategic positions;

- for the deferred equity component of remuneration: the focus is on internal and measurable sustainability objectives linked to the Generali 2025–2027 Climate & People strategy (CO₂ Emissions Reduction Target from Group Activities and People Engagement Rate).

The Generali Group’s remuneration policy provides for the integration of sustainability risks into investment decision-making processes, in line with internal regulatory requirements.

The continuous strengthening of the link between sustainability and remuneration represents a primary objective for the Generali Group.