We have the opportunity and responsibility to manage our business responsibly and to promote sustainable development, by directing capital resources towards innovative projects and solutions that have an impact on the socio-environmental development of the local area.
Our Policy on Responsible Lending and Investing ratifies our Commitment and defines the guidelines for the integration of ESG (Environmental, Social and Governance) criteria in the responsible management of our financing, advisory, investment and consultancy activities.
In particular, the policy sets forth that our evaluations are based on an approach which combines the results of:
- negative screening, criteria that exclude beforehand and in all activities subjects directly and closely linked to the production and/or sale of arms that violate fundamental humanitarian principles. In relation to financing, we do not consider subjects sentenced for money laundering, violation of human rights and imprisonment, production and/or dissemination of paedo-pornographic material In addition, we carry out in-depth evaluations in the case of counterparties operating in sectors deemed not socially responsible, as well as characterised by a low ESG rating and/or companies involved in disputes considered capable of influencing the reputational and risk-return profile;
- positive screening, criteria that reward the companies committed to promoting socio-environmental responsibility, the protection of human rights and the fight against climate change.
In defining our Policy, we have made reference to internationally recognised principles and frameworks, such as the Universal Declaration of Human Rights, the 10 Global Compact principles of the United Nations and the Sustainable Development Goals (SDGs) of the United Nations.
In line with the Group Policies, Mediobanca SGR, RAM Active Investment and Cairn Capital have all drawn up their own policies for responsible investments, to be applied in providing investment advisory services and managing clients’ portfolios and investment funds. Such policies are based, among other things, on the Principles for Responsible Investment (PRI), the criteria set by the United Nations with the aim of developing a sustainable global financial system and supporting the signatories in integrating ESG aspects into their investment decisions and active shareholder structure.
In portfolio management, the companies concerned have started to integrate ESG criteria with the aim of combining traditional financial valuations with assessments based on sustainability factors. Data has shown that a better performance on ESG issues can lead to an improved valuation of the overall risk/return for issuers belonging to the same sector with similar financial characteristics. Mediobanca therefore gives priority to such issuers without compromising the expected final performance of the portfolio, in the client’s interest according to a best-in-class approach.
To enable effective implementation of its sustainability policies, Mediobanca has also integrated environmental, social and governance (ESG) objectives into its remuneration policies , devoting increasing space to the achievement of such objectives within them with reference to the individual scope of responsibility in business and operating terms.