Directive on responsible investing

The commitment made in the Group Sustainability Policy has been the starting point for defining the new Directive on Responsible Investing, which bases investment and lending decisions on factors which are not merely financial but also environmental and social, in the knowledge that a responsible investment and lending process also contributes to mitigating reputational risks.
 
Our approach seeks to identify, assess, prevent and reduce potential risks deriving from investments and lending transactions with counterparties involved in serious events which impact negatively in the areas of the environment, human rights, employees’ rights, bribery and corruption, and terrorism. We also exclude investment activities which are potentially not in line with the principles identified from the most widely recognized international standards or which are considered to be a serious risk for the environment or for society.
 
The Directive on responsible investing was approved by the Sustainability Committee  and shared with the Risk Committee.
  • Reference principles: the Universal Declaration of Human Rights, the Ten Principles of the UN Global Compact, Principles for Responsible Investment (PRI), and the Equator Principles
  • Process: in order to promote a responsible investment and lending process based on consideration of  ESG criteria, we are defining the activities and indicators to support assessment of the counterparty at the stage of evaluating the business proposals which come before the approving bodies
    1. Pre-assessment: at this stage the following are excluded a priori:
      • parties whose guilt has been proven in court in the past ten years with reference to crimes of money-laundering or terrorism financing; violation of human rights; possession, production and/or distribution of child pornography; environmental catastrophes; conspiracy to commit such crimes; links with mafia-type organizational (including international)
      • Parties which produce weapons that violate fundamental humanitarian principles (such as cluster bombs, anti-personnel mines, nuclear, chemical or bacteriological weapons)
    • Assessment: at this stage indepth analysis is required of proposals from parties which, based on reliable sources, are and/or have been accused or convicted (witout time limit) with reference to the following crimes: money-laundering, terrorism financing or bribery and corruption, violation of human rights, possession, production and/or distribution of child pornography, environmental catastrophes; conspiracy to commit such crimes; links with mafia-type organizational (including international)
    • Investment decision: after the assessment stage has been completed, the format containing the analysis and considerations will be submitted to the relevant committee, which will make its own independent assessment and then give its verdict on the proposed transaction.

Last update: 21/06/2018