Discover the future of sustainable investing and the roadmap for issuers and managers, from the hand of EY
Fundacin SERES and EY presented the work prepared by the two organizations in the field of sustainable finance, on the basis of the investor laboratory, in which various companies of Fundacin SERES participated. Companies that need to increase their capital must respond to increasingly sophisticated demands from capital managers, whose decision-making processes incorporate the analysis of variables not only linked to the income statement. To meet these requirements, they must have internal information control and extra-financial management that are sufficiently solid to meet investor demands. Likewise, the managers (banks, funds, private investors) voluntarily assume the principles of action which oblige them to conduct diligent proactive management of the performance of the beneficiary companies, in which they lend or invest.
The work aims to provide a framework for companies to operate in this context and has been called an ‘integrated sustainable finance framework’ which, in addition to clarifying certain concepts (sustainable finance alternatives, ESG investment strategies, implications of the integration of sustainability in the performance of companies in relation to their access to finance / investment, etc.), identifies the main actors involved (companies / issuers, financial entities, investors, data providers, auditors, regulators). As part of the work in which the SERES companies took part, the relationship between companies and these external actors was explored, how the internal functions of companies are impacted and what is the role of “DIRSE” in this new context. In addition, the transformation brought about by this novelty for the activity of financial entities was analyzed, at the level of business processes and support areas. The result of the analysis carried out in collaboration with the companies participating in the meetings of the Inversores Labs was gathered in 4 documents:
Clarification of concepts and mapping of actors Role of the issuer Role of financial entities Conclusions
Federico Linares, President of EY Espaa praised and said that “luckily sustainability is at the center of the debate, it is on the corporate agenda and it is on the minds of CEOs, investors and lawmakers. But it’s convenient to eliminate noise, bring clarity, and establish frameworks that help us all communicate effectively and, most importantly, transparently. And I think the reports we’re presenting here today are helping to make that happen ”. For his part, Francisco Romn, president of the SERES Foundation, assured that “in the field of organizations, we are paying more and more attention to the concentration of investors in the world of sustainable development. It is necessary to align with the overall goals, otherwise we will not be able to achieve much benefit for our companies. In a more complex world and with new vulnerable groups, our impact measurement methodologies are evolving, a common language and projects that make the importance of this work tangible ”.
Alberto Castilla, partner responsible for sustainable development at EY, assured that “one of the most relevant aspects of this joint work is that we cannot forget that when we talk about sustainable financing, we are talking about the impact that it has on all the functions of the companies “” In an environment of confusion and great heterogeneity “, he added,” we analyze how this new environment of sustainable financing will also translate into a change of the internal roles of the organizations , where DIRSE has a clear impact on coordinating, understanding and capturing trends. and a critical role for companies in exploring opportunities. “
Ana Sainz, Managing Director of the SERES Foundation, presented the roundtable and underlined that “one of the ambitions of SERES is to be concerned and concerned with social improvement, risk management and to achieve it by being more and more competitive. We know that there is no separate discourse between economy and society. The subject we are discussing today is a precise demonstration of this interconnection. Today we want to be the promoters of what it means to invest and sustain financing and what will be the impact and the role that they will have in the future ”.
According to Toni Ballabriga, Global Head of Responsible Business at BBVA “we are playing a fundamental role in this transformation that the world needs. The bank finances 70% of the European economy. At BBVA, we incorporated sustainability as a strategic priority in our business plan a year ago with the aim of supporting customers and society as a whole, with a second objective of integrating sustainability into this process, but also to participate in the systemic change that we need. “He added that” we want to mobilize 100 billion euros between 2018 and 2025 in sustainable finance. We have already mobilized 50 billion euros. But we have a differential value proposition beyond funding. We understand that our role is to advise and strategy very data-driven and with an approach also to create an ecosystem and alliances with others to facilitate the economy as a whole to make the transition that we need. “Ballabriga concluded by adding that” in addition, we have a very clear goal: the SDGs as a guide for climate action and inclusive growth with 5 selected SDGs where we understand that we can create the best opportunities. “
According to Elena Valderrbano, “our role as a transmitter dates back to the end of the 90s. Telefnica was a pioneer in sustainability and without this journey and this journey, long-term betting would have been impossible to become a transmitter. I firmly believe that sustainable funding is here to stay and that there is no funding that is not sustainable ”.
Antnio Calada, Managing Director of Fundacin Repsol stressed that “impact investing must be closely aligned with the strategy of any business and meet criteria of profitability, ESG is not compliance, it is business. In order to generate a relevant social and environmental impact, it must first be economically sustainable. At Fundacin Repsol, we are committed to impacting investment to promote the growth and development of companies working for a sustainable and inclusive energy transition, with a focus on offsetting emissions through large-scale reforestation, circular economy , sustainable mobility and improved energy efficiency through eco-reforms in homes ”.
Aitor Jauregui, Head of BlackRock Spain, Portugal and Andorra, said “the world is in a transition to a net zero carbon economy before 2050 and our CEO Larry Fink pointed out in his latest letter. annual climate transition represents a historic investment opportunity. At BlackRock, we are fully aware of this reality and that is why we have made sustainability the focus of all our decisions, because we believe that our clients will get a better risk-adjusted return if they are up front. -guard this transition. We are very proud to lead a commitment that aims to create a more sustainable world in the long term ”.
Alberto Andreu, Senior Advisor of EY, closed the session and recalled that “we are witnessing a systemic change in which companies will need funds to survive, at the center of a regulatory and competitive tsunami, which will require a clarification process. We are moving towards an integrated model of sustainable finance in which all the players are located: auditors, data providers, funders, regulator and at the center, companies, with the DIRSE as one of the fundamental pieces ”.