Ethical Management

The importance of ecological and social issues in investment has constantly grown. Sustainability has been identified as an important global trend and is thus a current and long-term determining factor for issues concerning social, economic and political aspects.

ESG criteria consist of a set of environmental, social and governance standards applicable to the activities of companies. More and more stakeholders are now demanding more transparency and sustainable practices, and are looking for information that goes beyond a company’s financial report. They expect companies to take their responsibilities by identifying the ecological and social impact of their business model, and by orienting it towards sustainable development.

 ESG considerations are an integral part of a responsible investment strategy and are an effective tool to improve value generation over the long term.

Environmental (E)

Covers themes such as climate risks, natural resources scarcity, pollution and waste, and environmental opportunities.

Social (S)

Includes labour issues and product liability, risks such as data security, and stakeholder opposition.

Governance (G)

Encompasses items relating to corporate governance and behaviour such as board quality and effectiveness.

There is increasing awareness that material ESG factors can be tied to a company’s long-term performance.