A financial market that promotes sustainable growth leading businesses to communicate their environmental, social and governance practices (ESG). This is the goal of an appeal from PRI (Principles for Responsible Investment), a global network supported by the United Nations that promotes the spread of sustainable and responsible investment.
Within the initiative, which sees Enel CEO Francesco Starace among the signatories, letters were sent to president of stock exchanges around the world asking that listed companies should voluntarily account for their ESG activities by the end of 2016. The request aims at filling an information gap, considering that only 25 percent of WFE (an association that gathers the world’s stock exchanges) members currently ask such companies to present these reports. In fact, in order to adequately assess listed companies, investors must have access to a wide-ranging amount of documents. Highlighting the importance of ESG criteria in defining material for the evaluation is an important step forward towards the creation of a financial system that will enable a sustainable economic growth.
Signatories of the appeal include investment funds, SRI (Socially Responsible Investors), pension funds and companies like Enel, confirming the central role of sustainability in the corporate culture of the energy multinational company and of its leadership in the stakeholder engagement of ESG investors.
The appeal is one of various initiatives aiming at ensuring that all financial markets should implement an ESG accounting. The Sustainable Stock Exchange (SSE), a platform originating from the joint work of various United Nations initiatives (Conference on trade and development, Global Compact, Programme for the Environment and PRI) recently published a Voluntary Model Reporting Guidance, a global model that stock exchanges can use as a starting point to draw up their own ESG reporting guide for businesses.
Confirming the importance of this issue for Enel, the Global Reporting Initiative (GRI) acknowledged for the ninth consecutive year the company’s commitment to transparent and accurate sustainability reporting, involved the electricity multinational in drawing up the updated version of the Sustainability Reporting Guidelines (G4) and asked it to participate in the “Sustainability Disclosures 2025” project as a global partner.