The crisis due to the Russian invasion of Ukraine has inevitably turned the spotlight on the importance of sustainable investments and the concept of sustainability.
Focusing exclusively on financial returns has now become reductive for companies, as investors and consumers are increasingly interested in learning more about ESG factors.
ESG means Environmental, Social, Governance and is used in the economic/financial field to indicate all those activities related to responsible investment that pursue the typical objectives of financial management while also taking into account environmental, social and governance aspectsin fact.
The idea that ESG risks are financially relevant and consequently can have an impact on a company's profits is a fundamental concept underpinning sustainable investing and is one of the main reasons for its exponential growth.
The most significant impact of the widespread use of ESG assessments is obviously on people and the planet, so many companies are adopting more systemic approaches in order to contribute more and more to this positive impact.
Is the war in Ukraine affecting our sustainability choices?
Certainly yes, the current crisis is forcing many companies to change as a form of proactive response and commitment to finding alternative solutions to reduce the heavy and costly dependence on Russian energy, as advocated by the European Union's 'REPower EU' plan, which will continue to increase Ecological Transition policies in the coming years to reach the 2027 targets.
How can a company contribute to this project?
Organisations now have new and important incentives to pursue sustainability goals and can begin to play their part in building a better future.
There are many tools available to companies and intended for their stakeholders; the main one is the Social Report, CSR Report - Corporate Social Responsibility Report, but they all contribute to improving performance from a sustainable perspective.
To find out more or request advice from our experts on your company's valuation options, please do not hesitate to contact us at info@lca-ambiente.com or info@scfinternational.it. We will be on hand to answer all your questions and support you on the path to sustainability.
For more information:
https://ec.europa.eu/info/publications/key-documents-repowereu_en