ESG Identity
Creating lasting and sustainable value: ESG according to REVO
Some businesses and organisations, at some point in their history, inevitably encounter a question they need to answer: how they can apply sustainability principles and take ESG factors into account.
And there are some companies which start their business journey with this question and base their development plans on it. REVO is one of these companies: being sustainable is an integral part of REVO’s identity and a cornerstone of its corporate life.
Combining a lasting capacity to generate value with the need to act as a corporate citizen and contribute to the common goals of a safer, environmentally friendly, socially fair and sustainable world in the long term: REVO wanted to incorporate this way of operating, making it an essential, founding element of the company.
For REVO, its ESG identity is not a corollary of a competitive business strategy: it is the premise behind it.
This idea of ESG as a founding condition is, for us, the only possible way to implement a lasting value creation project that reflects both the essence of the original project and our idea of entrepreneurial excellence.
We understand that excellence is not a goal but a starting point for further improvement; but we also know that it is better to be born with a fully-integrated ESG approach than to develop it.
Full integration of ESG
ESG stands for Environmental, Social and Governance, combining three dimensions that measure the sustainability level of a business. We believe that a business is more than an economic entity capable of generating wealth: it is an entity that should contribute to human and social progress, without eroding natural capital.
For this reason, REVO was born with a firmly defined ESG vocation and a full ESG vision. Thanks to the aspiration and vision of its top management, the main traits of its ESG identity were already outlined at the project definition stage.
The 2022-2025 Business Plan, presented in March 2021 by the SPAC of the same name, which launched the REVO project, already incorporates an initial nucleus of ESG practices and parameters in the development strategy of the new company, with a strong insurtech vocation and sustainability as an essential framework.
The understanding of the centrality and importance of a sustainability approach that combines vision and action, in order to make it a feature of the company’s way of being and operating, enabled the immediate definition of the first practices to be adopted.
A “native”, integrated ESG approach
Value Chain & Product Innovation
We are committed to creating a business that integrates - and is guided by - ESG factors and indicators, through:
• The definition of an ESG-oriented pricing strategy, alongside innovative ESG-driven pricing models
• The use of third-party ESG scores in order to offer transparency in data quality and origin
• The complete integration of the customer score into the underwriting flow
• Understanding and monitoring of the portfolio, also through the aggregate analysis of ESG responsibility indicators
In general, we pay close attention to the entire value chain, as we know that insurance products have a direct impact on customers and their socio-economic sphere, due to their ability to alleviate the impact of unexpected financial and personal shocks.
Therefore, we strive to:
• provide clear information and fair insurance services for customers, with a perspective of transparency and responsibility towards all stakeholders, including the use of clear and accessible documentation;
• enhance the accessibility and availability of the solutions offered;
• incorporate ESG factors into pricing characteristics and the product portfolio.
We aim for a high level of business process digitalisation and use the “proof of authority” type of blockchain technology, a transaction validation mechanism that is less energy-intensive than its alternatives. We ensure the transparency, traceability and security of operational processes and optimise our approach to managing risks arising from the Company’s business, such as fraud, corruption, embezzlement or administrative offences.
The use of parametric solutions and the OVERX cloud-based digital platform reduce operational risks, as manual data production is reduced and transfer is more efficient. At the same time, cutting-edge technologies such as IoT and machine learning tools make our management more rapid and efficient. The scope of these innovations favours a more ethical and responsible conduct of business, in full compliance with the provisions of the REVO Code of Ethics.
Environmental
Our focus on respect for the environment is also at the heart of the proprietary technology we have developed to support innovation in our products and business processes. The OVERX platform, including through the use of blockchain “proof of authority” technologies, enables us, inter alia, to limit paper consumption and avoid material waste: OVERX processes are in fact 100% paperless.
Our focus on respect for the environment also underpins the selection of buildings for our Verona and Milan offices (the latter will be operational from early 2023). For both offices, buildings were chosen that had undergone large-scale redevelopment in order to meet ESG energy efficiency and environmental sustainability targets.
Our focus on the environment and the liveability of our internal spaces is intended to enable greater and more enjoyable sharing and interaction between working groups. We believe this to be necessary for full operational efficiency. These environments are designed to ensure the well-being of employees, with modern, comfortable architectural solutions and a particular focus, thanks to their proximity to transport infrastructure and ease of connection, to reducing emissions related to business travel.
Investment strategy
We pay particularly close attention to the exclusion of instruments that are issued by “controversial” issuers or are not substantially geared towards the achievement of ethical, social and governance objectives. Our portfolio already includes bonds classified as green or sustainable, whose resources are used by issuers to achieve environmental and social sustainability goals.
This growing focus on virtuous issuers and business stories will also be reflected in the selection of products managed with underlying strategies based on substantive sustainability criteria.