Sustainable Finance

Financial instruments to manage the opportunities of climate change

Climate Finance or Sustainable Finance must be considered as an essential tool to accelerate action on the climate, effectively manage the risks and opportunities associated with climate change, call for taking a leading role in supporting this process.

Sustainable finance, in terms of "SRI" (Sustainable and Responsible Investment) includes investments that, in a long-term perspective, integrate environmental, social and governance criteria (ESG).

Strengthening the role of finance in realizing an efficient economy that also achieves environmental and social objectives is one of the objectives set by the European Community.With the first action plan on sustainable finance, which will implement a unified system (taxonomy) to provide clarity and guidance on the activities to be considered "sustainable" and useful for climate change mitigation, Europe is committed to promote a more sustainable and responsible society and a low-carbon economy.

Confidence in climate objectives and the use of Sustainable Finance to tackle climate change is fundamental. By bringing sustainable financial instruments closer to businesses, the private sector can help raise global awareness of climate change.

The Climate Risk perception of the companies listed on FTSE MIB

The catastrophic effects deriving from the climate changes have never been so evident and worrying sea levels are rising; the oceans acidification is accelerating; one million animal and plant species are in danger of extinction; the last 4 years were the hottest on record. The climate change environmental footprint can be easily measured, and it is clear for all to see, but to this day, the impact that the climate change can have on the economy is not taken into account with the same attention and awareness.

In this scenario, the global and collective answer for the fight against the climate change is vital and more urgent than ever. This is why the action of the private sector should not be delayed any longer.

In order to properly evaluate the risks and the opportunities deriving from the climate change, it is important to have a robust and consistent reporting which allows companies and investors to better understand the financial consequences associated to climate changes.