3 November 2017 | Internet

Impact of the responsible investment in the market

One is due to improve the governance and sustainability

With the irruption of private enterprise in the spheres that before were believed exclusive rights of the States and with the creation of a global financial market, the UN leads from 2006 an initiative that consists of the development and application of the €œPrinciples of Responsible Investment€ (PRI by its abbreviations in English).

This initiative arises from the invitation that to him Secretary General, Kofi Ananh does then, to the majors institutional investors of the world and consists of privileging the analysis of the environmental, social factors and of governance (ESG factors by its abbreviation in English) at the time of making decisions from investment on values emitted by the companies, or the nations.

In situations of crisis and turbulences in the financial markets, to respect this criterion of investment can bring positive consequences for the investors, the stability of the economies and the global society as a whole. This acts as a real protection for the investors when privileging the sustainability on the speculative yield.

To the being an independent initiative, is not object of possible conflicts of interest with the governmental beings or private enterprises. It tries to involve the creators of policies you publish, even though does not have direct relation with the States. Its independence is a strength in terms of credibility and of objectivity with the principles that it promulgates.

The increasing tendency in its adoption and the volume of the administered financial assets is a clear sample of the importance that has taken the initiative within the owners of financial assets (Asset Owners), the administrators of investment portfolios (Investment Managers), and the lenders of services to the financial industry (Service Providers).

One is due to stop understanding the sustainability as processes of altruism or philanthropy. A company is not more or less sustainable in which their employees paint facades of schools or donate toys for kids; what it does sustainable is the fulfillment of corporative policies that assure the permanence their activity in the long term. And for the case of the States, the fortification of the own elements of the governance.

On the other hand one is due to generate information of way standardized on all those aspects that demonstrate sustainability practices and that is not reflected in the financial statements, and this way, to allow that the analysts can privilege factors ASG as a form to reduce risks and to increase the benefits in its portfolios of investment.

The investors are prepared to pay to more buy bonds emitted by considered companies or States sustainable, which is translated in a reduction of the financial costs. And for the emitters of action, in an increase in the value of market of the companies.

Source: The Republic €“ Andr©s Villota

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