ESG criteria: investing in the future of sustainability

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Criteri ESG

ESG criteria: investing in the future of sustainability

ESG criteria (an acronym for Environmental Social Governance) assess a company’s performance not only in terms of financial indicators, but also by valuing its social and environmental impact. A company is not an entity closed in on itself, but part of a community and a territory. Being sustainable is an investment that creates a virtuous circle between economic growth and a positive, concrete, and measurable environmental and social impact.

But what exactly are these criteria and why are they essential for companies?

Environmental criteria

They concern the world around us: waste and pollution, depletion of natural resources, preservation of biodiversity, emission of greenhouse gases, deforestation, and climate change; they involve the sustainable use of resources, waste management, energy efficiency, and protection of the ecosystem.

icona sociale

Social criteria

They consider the impact of a company on society as broadly as possible. This includes attention to human rights, diversity and inclusion, relationships, employee health, and safety, impact on local communities, and commitments to social responsibility.

icona governance

Governance criteria

They refer to the overall structures, rules, and strategies guiding the management of a company. These include transparency, business ethics, proper risk management, accountability of managers, fair remuneration, and independence of boards of directors.

Companies adopting sound ESG criteria can build a solid reputation and earn the trust of investors, customers, employees, and stakeholders, as well as the trust of the community.

Unlike in the past, when investors were more interested in investing in companies or projects that were primarily attractive from an economic point of view, today a new generation of socially aware investors is emerging.  These wish to invest in companies with the same principles and moral values in which they believe, to create value and reduce investment risk.

Adopting ESG criteria can improve the reputation and the trust of customers, who prefer brands that have a positive impact on society and the environment.

Furthermore, ESG criteria can help attract and retain high-quality talents: employees are more willing to work for companies that care about social welfare and the environment, and a working environment aligned with such values can increase employee satisfaction and loyalty towards the company.

Another positive aspect is the opportunity to explore innovative ideas and projects. A focus on ESG criteria drives companies to invest in sustainable technologies and develop eco-friendly products, which can open new business opportunities and expand their customer base.

Companies that are committed to ESG criteria can benefit from access to subsidized financing, as financial institutions and government programs often favor companies that have a positive ESG footprint.

Finally, the adoption of ESG criteria helps companies to be consistent with current regulations, avoiding potential penalties and legal problems and contributing to improve international business competitiveness.

In short, the adoption of ESG criteria offers significant benefits to companies, going beyond the financial aspect alone.
This choice promotes responsible and sustainable management, with positive effects both for the company itself and for the surrounding community and environment. Investing in the future by focusing on sustainability is a rewarding path for everyone.

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