Gorno Tempini at Euronext Sustainability Week: “ESG topics at all the Board’s meetings”

Summary

Sustainability as a long-term journey, and not just a goal

Sustainability cannot just be a goal, but should represent a long-term journey, which calls for a pragmatic approach to achieving objectives. In an increasingly challenging global context and faced with a growing demand for regulation in the sector of sustainability, it is vital to find a balance between financial performance and ESG goals - to avoid losing a competitive edge - that also takes into account the social costs of the transition and its effects on people. Governance is becoming increasingly important, with Board Meetings having a growing role in decision-making processes addressing environmental, sustainability and governance issues.

These were the main themes addressed by CDP’s Chairman, Giovanni Gorno Tempini, taking part in the opening panel on the first day of Euronext Sustainability Week, the annual event held at Borsa Italiana’s headquarters, during which he underscored how sustainability at CDP was also key during Board Meetings. While ESG topics were discussed at 40% of board meetings in 2021 and 2022, they had been discussed at all meetings held in 2023 and 2024.

“The three ESG dimensions impact every sector of the economy, no longer just heavy industry, but new sectors too, such as agriculture, soil use, water management, manufacturing, real estate and space and materials’ management, said Gorno Tempini, pointing out the challenges faced by many businesses to align with new regulations, such as the EU’s Corporate Sustainability Reporting Directive, which has strengthened reporting obligations for ESG indicators, extending the scope of reporting on risks, opportunities, objectives and impacts related to environmental, social and governance issues, to a broader set of companies, and increasing the quality and quantity of ESG indicators that they have to report on. The new set of information will be used to assess companies before granting a loan or investment. In this context, it is essential to make sustainability just as ‘sustainable’ for players who are less prepared for the new ESG regulations, such as small and medium-sized enterprises, taking a pragmatic approach and a medium-/long-term view”.

CDP’s Chairman said that “the challenge for the Group is to combine its mission with the country’s development, and extend loan opportunities to Italy’s economic and production fabric, with the intent of making loans increasingly close to the new ESG European standards”.

This commitment has played out in various stages of a journey that has been mapped out. In fact, CDP has adopted specific internal policies for each sector it operates in, introducing a new loan assessment model that combines sustainability objectives in both the ex-ante and ex-post stages, using a new risk-return-impact based model. In this way, the effectiveness of operations is measured, considering the contribution made, also, for example, in terms of reducing CO2 emissions.

The effectiveness of Cassa Depositi e Prestiti’s actions taken so far, designed to generate positive economic, social and environmental impacts in line with the best practices adopted by international financial institutions, has been confirmed by the ESG ratings rewarding its work.

Find out more about sustainability’s key role in CDP’s strategy. Click here.