Sustainable finance
Sustainable finance applies the principles of financial management and development alongside those of environmental sustainability. The goal is to create a business that generates value over the medium to long term, producing added value while also being beneficial to society and the environment.
The priority is to align with the principles set out in the Paris Agreement on climate change and the United Nations Agenda for sustainable development.
This has been translated into the “Action Plan on Sustainable Finance” published by the European Commission, which outlines the objectives, strategies, and measures needed to build a financial system that is sustainable from an economic, social, and environmental perspective.
Start creating sustainable value
Creating a sustainable organisation
With the impact of the pandemic and the major climate changes of recent decades, business leaders are facing numerous challenges, including preserving the value created by the company while generating a positive social and environmental impact for all stakeholders.
Becoming a sustainable, fair, and inclusive company has become one of the key priorities for the years ahead.
To achieve these goals, Polo Innovativo has identified a number of elements to be developed in order to become a truly sustainable business.
The role of leadership therefore becomes critically important. The behaviour of leaders must also evolve and act as a guide for change. Too often, actions aimed at improving corporate sustainability become merely symbolic measures that fail to generate real results, focusing only on short-term profits without a long-term vision.
Stakeholder inclusion:
during the implementation of business processes, a company interacts with many stakeholders who have different expectations and mindsets. Building trusted partnerships creates major benefits and allows everyone to move in a common direction, including in terms of environmental sustainability.
Technology and innovation:
contrary to what many believed until a few years ago, the green economy sector, and the areas connected to it, represent an endless source of opportunities for creating innovative solutions and new technologies. Responsible innovation makes it possible to significantly reduce operating costs and create opportunities for developing environmentally beneficial technologies.
A philosophy of continuous improvement:
through a journey made up of small but consistent efforts over time, significant goals can be achieved within a few years. Embedding a philosophy of continuous improvement among your company’s people will create a virtuous cycle that benefits both the organisation and its stakeholders.
Mission and vision:
to achieve the goals described above, it is essential to have a clear vision of what the company truly wants to achieve, and a mission that defines the tools and strategies that will be used to reach those goals.
Including employees in the process:
employees must play a central role in the improvement process and should be actively involved through activities such as brainstorming sessions. This helps ensure that the processes are fully embraced across the organisation.
Sustainable finance investments
Sustainable investments combine a wide range of investment strategies and approaches that take into account environmental, social, and governance considerations (ESG).
At the core of everything must be a value creation plan driven by a proactive mindset and openness to change across all business departments.
To achieve sustainability goals, it is possible to develop a structured journey made up of several steps.
Assessment of the current state:
understanding the current level of sustainability by evaluating different quantitative and qualitative variables. This phase helps identify the areas that need improvement and serves as the starting point for identifying the levers of change.Planning improvements:
at this stage, the objectives to be achieved and the phases needed to complete the activities are defined. The team responsible for the development of the project is also formed, along with the indicators that must be monitored to measure progress numerically.Execution of activities:
implementation of the project roadmap in order to achieve sustainability objectives.Results monitoring and continuous improvement:
once the project activities have been completed, the first step is to evaluate the results by comparing them with the KPIs identified earlier. But the process does not end there. It is also necessary to ensure that the principles have been fully embedded and to activate a process of continuous improvement.Sustainable finance investments
Investors are increasingly focusing on companies with internal policies geared towards sustainability, because climate change and global warming represent significant risks for their portfolios.
New business models centred on environmental protection and the reduction of carbon emissions, which will emerge in the coming years, will offer new investment opportunities.
A company that demonstrates awareness of environmental challenges and provides public evidence of its commitment to these goals becomes better positioned to attract a greater number of customers and, consequently, more investors.