ESG considerations

Environmental, social and governance considerations are generally taken into account when assessing the sustainability of an economic activity or a financial instrument.

Environmental considerations include climate change mitigation and adaptation, the transition toward a net-zero emissions economy (climate neutrality), as well as the environment more broadly, for instance the preservation of biodiversity, pollution prevention and the circular economy.

Social considerations refer to issues of inequality, inclusiveness, labour relations, investment in human capital and communities, as well as human rights issues.

Lastly, the governance of public and private institutions plays a fundamental role in ensuring the inclusion of social and environmental considerations in the decision-making process, for instance through policies for diversity in management structures, the presence of external advisors, and executive remuneration.

Taking ESG considerations into account means investing in businesses that carry out sustainable economic activities, consistent with the UN Global Compact's Ten Principles, in the areas of human rights, labour, the environment and anti-corruption, as well as with the UN 2030 Agenda for Sustainable Development goal and with the Paris Agreement on climate change.