Sustainable finance integrates environmental, social, and governance principles into the investment decisions of financial professionals. Sustainable finance instruments such as green bonds or "sustainability-linked" instruments are an important confirmation of how the financial system can respond to the need to address environmental risks, while serving collective well-being.
Responsible investors' assessments address all ESG dimensions, although the weight given to each may vary from investor to investor:
- Environmental considerations may include the organisation's ability to govern and mitigate risks and op- portunities arising from climate change, preserve biodiversity, prevent pollution, and act with a view to the circular economy.
- Social considerations can relate to issues of inequality, inclusiveness, labour relations, investments in people and communities, and human rights issues.
- The governance of public and private institutions - including management structures, employee relations, and executive compensation - plays a key role in ensuring that social and environmental considerations are included in decision-making.
ESG Linked facility
In terms of sustainable finance, in 2021, the Company signed a €750 million Sustainable Link Facility in which the facility margin may be subject to adjustment against the achievement of specific ESG objectives such as carbon footprint, gender diversity and road safety. Autostrade per l'Italia will reinvest the amount equivalent to any reduction in margin in initiatives designed to further improve its sustainability roadmap and/or aimed at external beneficiaries (such as NGOs, foundations).
Finally, the Company has the ambition to promote the best practices of finance and to offer a coherent catalog of Sustainability-Linked instruments, both to the capital market and to concessional and development finance; to this end, an innovative "Sustainability-Linked Financing Framework" is being prepared