While it is true that today ESG issues, the Environment, Social and Governance characteristics inherent in every type of business, are increasingly high on the priorities in the agendas of the boards of major organizations, carbon footprint is certainly among the most important issues in the field of sustainability.
When one thinks of an economic system in harmony with nature and the land, the shape of the circle always comes to mind, of the interconnection and nature that from a source becomes capital and then returns to transform itself into ever new elements.
Climate change is increasingly being recognized as a major risk to businesses. The physical impacts of the environmental disaster caused by climate change, such as extreme weather events, sea level rise, and droughts, can disrupt supply chains, damage infrastructure, and impact operations. In addition, the transition to a low-carbon economy presents risks and opportunities for businesses, as governments and consumers demand more sustainable practices. As a result, it's important for companies to evaluate their exposure to climate risks and opportunities. This can help them identify potential threats to their business and take steps to mitigate them, as well as seize opportunities to innovate and create value.
How do you communicate your commitment and achievements within an Environmental, Social, Governance plan?
If the beginning of the year 2022 has brought great innovations in the development of legislative issues concerning the financial disclosure envisaged by many companies in the process of due diligence in the area of sustainability, this is largely due to the European Union's proposal concerning the 'Corporate sustainability due diligence directive', CSDD for short, published last February 2022.
The state of the art of European legislation aimed at defining the legislative framework for sustainable investment is certainly the most advanced and defined in the global landscape at present.
It has become increasingly fashionable in recent years, within corporate governance policies, to emphasise a corollary of measures and principles, as defined by GRI 405 or the SASB method, a cornerstone of human capital and its related management: inclusion, diversity and equal opportunities policies.
The banking sector has a transformative role to play as a catalyst and enabler of a systemic acceleration towards a more sustainable economy, with the challenging mission of rapidly inducing change in consumer, lender and investor behaviour, and perhaps more importantly, in the broader society as a whole. The Horizon 2020 Energy Efficient Mortgages Initiative (EEMI) Bauhaus model is intended to support this process and build a new methodological approach to propose a strategic harmonic roadmap to accelerate the green and social transition.
It is now widely believed that the investment evaluation paradigm has undergone a profound evolution, over the past two centuries.
They are defined as characteristics, or criteria, but also as aspects and risks: in these and other ways it is tried to give a definition to the three pillars of sustainability: Environmental, Social and Governance, in an acronym: "ESG."