Of the three key factors of ESG, the one that has received the most attention concerns the impact on the environment. In fact, also due to the growing concern about the effects of climate change, investors have begun to consider environmental sustainability as a fundamental parameter to be evaluated in investment choices.
The environmental issue concerns several aspects, but what is evaluated in this area?
For example, the use of fossil fuels. Companies using such energy sources will be less able to cope with the transition to cleaner energy sources and, therefore, are less attractive to investors. Or managing water resources by reusing them from certain processes is privileged.
Another example concerns obsolescence: companies that produce durable products are privileged, so as to minimize the use of raw materials and have resources available for longer.
Practically, the environmental issue concerns many aspects that have long been underestimated and sacrificed on the economic altar by states and companies. However, it is necessary to completely change the point of view to continue to be competitive, putting the environmental issue at the center of the company’s strategy.
Alberto Cascavilla
#innovation4value #management #environment