ESG criteria create value both for companies and for the investors who decide to invest in them.
ESG criteria, which refer to environmental, social and corporate governance factors, have become in recent years factors that investors take into account when making investment decisions ( ESG Investing).
In addition, they play a fundamental role in the business model of companies since they can influence their results in various ways. Adopting strategies in which decisions based on these factors are integrated allows: saving resources, reducing costs, increasing productivity and reducing risks, while creating a positive impact for society and the environment.
The investors oriented towards Responsible Investment, can see their cost of capital reduced and improve their operating results and the share price.
The Environmental criteria refer to activities that have a positive impact on the environment, such as reducing pollution, the waste generation or the emission of greenhouse gasses. It also includes activities such as biodiversity protection.
The Social criteria refer to the actions related to the life of the human being. This category includes the management of human resources, working conditions and respect for Human Rights. Additionally, it includes the promotion of a diverse and inclusive company, as well as a healthy space for employees.
The Governance criteria refer to actions related to the corporate governance of companies and their culture. This category includes, for example, the compensation of directors, strong internal policies that ensure transparency.