In Italy, the Group’s employeess pension fund system consists of several funds in existence prior to the national supplementary pension reform. Following the ratification of the second-level Collective Agreement signed in 2015, as part of the ongoing rationalization of pension funds within the Group and consistently with the guidelines established by the supervisory authority, a defined contribution Pension Fund of Intesa Sanpaolo Group has been set up, which will aggregate the existing ones. This will enable significant benefits to the all employees, including the reduction of operational and financial risks, the simplification of the structures, the expansion of investment opportunities, as well as the gradual increase to 3.5% of the contribution paid by the company in favour of new recruits and colleagues on duty. Supplementary pensions cover approximately 100,000 people in Italy with assets allocated to benefits of over 9.3 billion euro.
Sustainable investment and supplementary pensions
The Intesa Sanpaolo Group Pension Fund, which by mid-2016 will merge with the new defined contribution Pension Fund, covers the employees of Intesa Sanpaolo and about 30 Group companies, is one of the most important Italian social security agencies. Aware of the role that an institutional investor can play in the management of environmental, social and governance issues, it adopted aCode of Ethics (PDF - 52 Kb), which - in addition to translating into rules the principles of conduct to be observed in the management of retirement savings - declares its commitment to sustainability and responsibility.
To translate these principles into practice, the Fund subscribed thePrinciples for Responsible Investment promoted by the United Nations (UNPRI), with the aim of encouraging companies in which it invests to act in a sustainable and respectful way with regard to all stakeholders, by assessing opportunities and financial risks related to the management of environmental, social and corporate governance factors in order to make their own investment decisions profitable over time. It also adhered to the CDP (Carbon Disclosure Project), an international non-profit organization that promotes the reduction of greenhouse gas emissions and the improvement of water management. In this regard, considering strategies that focus on the exclusion from the portfolio of companies that highlight critical factors not very effective, the Fund has decided to implement on the entire equity and bond portfolioa strategy of dialogue with companies where to invest (engagement) (PDF - 275 Kb), in order to raise awareness toward virtuous behaviour in terms of sustainability and responsibility. The equity and corporate portfolio of FAPA (the pension fund) in 2014 was made up of 459 companies. The engagement initiatives undertaken were 9 (2% of the total).
This commitment has been recognised and the Intesa Sanpaolo Group Pension Fund was assigned the "Sustainable Investor 2013" award, given by the Forum for Sustainable Finance to the Italian institutional investor that has been able to achieve the most effective and innovative initiatives in the integration of ESG criteria in the investment process or active shareholding.