Selection of the Responsible Futures Line of Etica Sgr. The ethical investment fund belonging to this line is Etica Impatto Clima, which focuses on the theme of climate change. The fund pays particular attention to a given investment topic, selecting securities based on an accurate analysis of the social and environmental responsibility of issuers.
We say NO to investments in companies involved in activities or sectors such as the use of fossil fuels, the development or use of nuclear energy, possession of bituminous sands, manufacture of armaments, gambling. Furthermore, we exclude companies negatively involved in corruption, respect for the environment, respect for workers’ rights.
We do not invest in the fields of oil and mining.
We exclude from our portfolios securities issued by governments that impose the death penalty or do not guarantee civil liberties, freedom of the press and political rights.
We say YES to the opportunity to invest in companies that care about the impact of their products and services on the environment and continuous improvement. For this reason, issuers that get through the first round are analysed in detail and evaluated according to specific environmental parameters and then compared with how their sector performs (“best in class” approach). This analysis is integrated with parameters measuring the impact of production on the environment, “low carbon” transition data (i.e. company targets for the multi-annual reduction of pollutant emissions) and data measuring the reputational risk of every single issuer.
We also say YES to the opportunity to invest in the most virtuous countries from an environmental point of view.
Only issuers that pass all the tests laid down by our methodology can be part of the investment universe of the Etica Impatto Clima Fund.
Green Bonds | Etica Impatto Clima
The nature of the Etica Impatto Clima fund means that the Investable Universe admits a type of financial instrument known as Green Bond.
Initially Green Bonds were only issued by supranational financial institutions such as the World Bank or the European Investment Bank, but later they were also issued by individual companies, countries, municipalities and state agencies. Etica Sgr’s selection of this type of instrument follows a precise and rigorous methodology. For issuers within the Investable Universe, constructed on the basis of a scrupulous screening of equities and bonds, investment in their Green Bonds is always permitted. For issuers outside the Investable Universe, whose equities and bonds remain excluded from investment (e.g. the financial sector), we may invest in their Green Bonds if the issuer passes the following two tests.
We say No to Green Bonds from issuers that:
- operate in sectors such as weapons, gambling, fossil fuels;
- use or develop nuclear energy;
- possess tar sands;
- are implicated in episodes of corruption, damage to the environment or abuse of worker’s rights.
Green bonds that pass the above filter must also be accompanied by a “Second Party Opinion” that meets the scrutiny of Etica Sgr (i.e. exceeds a given Etica Sgr assessment threshold).
NB: The Second Party Opinion is a sort of “mark of approval” issued by various bodies (ESG rating firms, external auditors, etc.) who attest to the “greenness” of the bond. The issuer applies for a Second Party Opinion when the bond is launched on the market. It is a non-binding opinion on the coherence between what is stated in the green bond’s Prospectus and what is laid down in the ICMA Principles or by the Climate Bonds Initiative, the most widely respected international guidelines.