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ESG Compliant Investments
Marchioretti Finance business line is the offer of quality financial investments for the final acquirer. For this reason not all investments are considered. Marchioretti Finance actively chooses investments based on the ESG standards compliance.
But what are ESG standards?
Here below the main aspects about ESG standards are explained, clarifying why their analysis is a reliable step to take and to be applied in order to evaluate an investment.
EVOLUTION OF TRADITIONAL INVESTING
While traditional investing delivers value about risks in relation to expected returns, sustainable investing offers a more balanced analysis, integrating environmental, social, and governance-related (ESG) criteria to the traditional investment criteria, in order to improve long-term outcomes.
As an evolution of traditional investing, sustainable investing obtains a wide recognition among industries, considering ESG factors as economic factors.
The reason lies in challenges that industries are facing more and more often because of regulatory expectations and fast-changing economics.
RESEARCH AND NEW COLLECTION OF STANDARDS
Valuable research is involved in this new collection of standards, with the aim of delivering corresponding valuable outcomes.
ESG requirements allow a consistent and transparent analysis of an investment. These standards can enhance the credibility of an owner asset, thanks to the opportunity for investors to receive or elaborate reports and compare trasparent data. All this thanks to the voluntary adoption of instruments suitable to compare past performance of an asset with the potential future long-term outcome.
MAIN ESG INVESTING ELEMENTS
Main and critical elements for the correct evaluation of an investment:
ESG investing is connected to the traditional investing theory, including the foundational concepts.
ESG investing makes a deeper analysis about the past and future creation of value, instead of using the traditional investment evaluation standards.
Depending of the kind of investment and its environment, ESG investing considers several external stakeholders with primary importance, critical for the healthy development of a company or investment.
INTERCONNECTION OF INVESTMENTS SUSTAINABILITY AND FINANCIAL SYSTEM
Most of all global and local events, the current Covid-19 pandemic shed light on the lack of interconnection between external sustainability and the more internal investment financial aspects.
Investors more than ever are now in need to incorporate ESG criteria into the investment process, in order to have an all-round understanding of the assets in which they invest.
Non-financial criteria are an essential part of the evaluation process as well as financial criteria, in order to recognise and define risks and growth opportunities.
ESG investing balances financial and extra-financial aspects to ensure that short-term goals do not compromise long-term goals. They make investors aware of a commensurate and sustainable risk, and of stakeholder interests, considering some external stakeholders primary as well as internal stakeholders.
Explained topics are based on the Swiss CFA Institute conception of the ESG standards.