Disclosure of climate risks and ESG information

Today we live in a world where environmental, social and governance factors (ESG) and its impact on Sustainability are gaining ever greater attention from financial markets, are less niche and more mainstream for asset managers and financial analysts therefore, there is a growing interest in sustainable finance by institutional investors who have a long-term vision, such as pension funds, sovereign wealth funds, insurance companies and, more recently, also by religious orders. Long-term investors, who have always paid attention to the value creation, now require information also on climate risks and natural capital as these issue are affecting their investment decisions and failing the initial skepticism about the linkage between Socially Responsible Investments (SRI) and unfavorable performance. Many investors are focusing their attention on those companies whose management helps mitigate the effects of climate change currently underway, adopt disinvestment strategies from fossil fuels, are aware of the risks and opportunities that a transition to a low-carbon economy can cause and whose production processes are therefore not the cause of high emissions of greenhouse gases (GHG) and investments in financial instruments such as low-carbon ETF 5 and environmental thematic funds are beginning to attract interest