Responsible investments, some approaches
Mar 13, 2024 3:38:39 GMT
Post by momena on Mar 13, 2024 3:38:39 GMT
Sustainable investments are those that are aimed at improving in some way the quality or condition of life of citizens in the local environment. These types of investments must be made for the long term (at least 5 years), they are subject to budgetary control that guarantees that they are financially sustainable for the entity.
Socially responsible investments (SRI), which take into account criteria related to environmental, social and corporate governance (ESG) factors, are gaining ground among savers' preferences.
According to a report by SpainSif, in Spain there are 185,614 million euros invested in these funds and almost 1,250 million in pension plans.
According to El País, "there is another France Mobile Number List series of products, such as green bonds, that are growing in popularity although numerous studies reinforce the idea that, at least in the short and medium term, neither funds, bonds nor pension plans offer profitability gains." compared to the common values.
For Beatriz Fernández, from Economists without Borders, «there is no consensus: “A taxonomy is being sought at the European level that defines this type of investment. There is nothing that tells us that a wallet is socially responsible.” In any case, the market is full of calls to decarbonize investment portfolios and classifications drawn up by managers about firms that contribute to making the world less bad.
The Morningstar site has an entire area dedicated to the study of ESG values and makes its own rankings. In one of his publications he highlights that “not all sustainable strategies are the same,” and points out the importance of “decarbonizing” portfolios. “The idea of divestment is based, in part, on the fact that companies involved in fossil fuels will have below-average long-term profitability due to, among other factors, increased extraction costs or decreased demand. of fossil fuels.”
Within corporate governance, companies with workforces that have gender balance or that demonstrate a greater number of independents on their boards are valued better.
For his part, Ricardo Zion, professor at EAE Business School, says that there is a growing tendency to reject the aggressive tax policies of multinationals aimed at avoiding paying taxes. “It has a very negative impact on the image, although it is difficult to quantify. “Companies are reconsidering this.”
Principles of sustainable investment
According to EAE Business School, among the financially sustainable investments that a local entity can carry out, the following can be mentioned:
All those actions aimed at improving lighting, sewage or garbage collection systems in the area.
Actions aimed at care, respect for the environment and energy efficiency (for example, installing public lighting based on solar streetlights).
Investments aimed at the development and efficiency of production models, both in agriculture, livestock and fishing and in other industrial and energy sectors.
Improvement of infrastructure, communication channels, transportation systems.
Care of gardens, public parks and other green areas.
Rehabilitation of public service buildings or buildings intended for use by the local community.
Works to recover damaged areas (for example, to repair damage to infrastructure caused by wind, river flooding, etc.).
Socially responsible investments (SRI), which take into account criteria related to environmental, social and corporate governance (ESG) factors, are gaining ground among savers' preferences.
According to a report by SpainSif, in Spain there are 185,614 million euros invested in these funds and almost 1,250 million in pension plans.
According to El País, "there is another France Mobile Number List series of products, such as green bonds, that are growing in popularity although numerous studies reinforce the idea that, at least in the short and medium term, neither funds, bonds nor pension plans offer profitability gains." compared to the common values.
For Beatriz Fernández, from Economists without Borders, «there is no consensus: “A taxonomy is being sought at the European level that defines this type of investment. There is nothing that tells us that a wallet is socially responsible.” In any case, the market is full of calls to decarbonize investment portfolios and classifications drawn up by managers about firms that contribute to making the world less bad.
The Morningstar site has an entire area dedicated to the study of ESG values and makes its own rankings. In one of his publications he highlights that “not all sustainable strategies are the same,” and points out the importance of “decarbonizing” portfolios. “The idea of divestment is based, in part, on the fact that companies involved in fossil fuels will have below-average long-term profitability due to, among other factors, increased extraction costs or decreased demand. of fossil fuels.”
Within corporate governance, companies with workforces that have gender balance or that demonstrate a greater number of independents on their boards are valued better.
For his part, Ricardo Zion, professor at EAE Business School, says that there is a growing tendency to reject the aggressive tax policies of multinationals aimed at avoiding paying taxes. “It has a very negative impact on the image, although it is difficult to quantify. “Companies are reconsidering this.”
Principles of sustainable investment
According to EAE Business School, among the financially sustainable investments that a local entity can carry out, the following can be mentioned:
All those actions aimed at improving lighting, sewage or garbage collection systems in the area.
Actions aimed at care, respect for the environment and energy efficiency (for example, installing public lighting based on solar streetlights).
Investments aimed at the development and efficiency of production models, both in agriculture, livestock and fishing and in other industrial and energy sectors.
Improvement of infrastructure, communication channels, transportation systems.
Care of gardens, public parks and other green areas.
Rehabilitation of public service buildings or buildings intended for use by the local community.
Works to recover damaged areas (for example, to repair damage to infrastructure caused by wind, river flooding, etc.).