by Federica Barella and Marianna Randazzo, respectively Senior Training Specialist and Training Specialist in Excellence Education and Valentina Farruggia, Consultant in Red Public

In recent years, the topic of sustainability has become a central element in corporate strategies, driven by growing regulatory pressures, investor expectations and widespread awareness of the environmental and social impact of economic activities. The ESG (Environmental, Social, Governance) approach represents an indispensable guide for companies that wish not only to mitigate risks, but also to seize new opportunities.

Financial institutions play a crucial role in the transition to a more sustainable economy, influencing and being influenced by the sustainability of the companies they finance. Through their ability to direct capital, these institutions can foster sustainable business practices and contribute to the reduction of systemic risks related to environmental degradation.

Protecting natural capital: concrete strategies and impacts

Nature provides businesses and society with essential services such as clean water, breathable air and biodiversity. These resources constitute natural capital, an asset that is often underestimated but fundamental for our economy. It is estimated that more than 50% of global GDP depends directly or indirectly on these goods, and their degradation represents a systemic risk for many industries.

Climate change and biodiversity loss are two interconnected challenges: for example, deforestation reduces carbon capture capacity, worsening the climate crisis, while the alteration of ecosystems undermines the resilience of nature itself. These phenomena, if not addressed, risk compromising entire economic sectors, especially those linked to agriculture, fishing and the management of natural resources.

Integrating ESG principles means acting on multiple fronts to reduce environmental impact and generate sustainable value. Businesses can adopt strategies that focus on:

• efficient use of energy and resources, favoring renewable solutions;
• responsible waste management, encouraging recycling and reuse;
• more sustainable logistical choices, reducing emissions associated with transport.

Although there are conflicting opinions on some compensation tools, the objective remains to promote a transition towards more sustainable models, progressively reducing the environmental footprint.

International regulations play a crucial role in guiding companies towards more sustainable practices. In this context, COP29, which recently concluded in Baku, represented an important step to strengthen climate action. The conference placed a strong emphasis on climate finance and the implementation of regulated carbon markets, to incentivize emissions reductions and promote sustainable development.

ESG data management: a strategic path

Within this context there is a very important aspect, which concerns the management of ESG data by companies. This is a strategic path for businesses that can happen in different ways:

1. Improved Regulatory Compliance: With increasingly stringent regulations globally, such as those imposed by the European Union with the Green Taxonomy and Sustainability Reporting Regulation (CSRD), companies must collect, manage and report ESG data accurately. Efficient management of ESG data ensures that companies comply with these regulations, avoiding fines and protecting their reputation.
   
2. Risk Assessment and Management: ESG data helps companies identify and manage risks related to environmental, social and governance factors. For example, climate change, human rights abuses in the supply chain, or inadequate corporate governance can pose significant risks. The strategic management of this data allows you to anticipate and mitigate these risks, making the company more resilient.
   
3. Attracting Investors and Access to Capital: Investors are increasingly evaluating companies’ ESG performance as criteria for their investment decisions. Transparent and structured management of ESG data can improve the valuation of companies, facilitating access to financing and capital on more advantageous conditions. So-called “sustainable investing” is booming, and companies that excel in ESG metrics are positioned to attract these capital flows.
   
4. Improving Operational Efficiency: The collection and analysis of ESG data can highlight operational inefficiencies, such as waste of energy or material resources. Intervening in these areas not only reduces environmental impact, but can also lead to significant cost savings, improving the company’s overall economic performance.
   
5. Innovation and Competitive Advantage: Managing ESG data strategically stimulates innovation, as it pushes companies to develop new sustainable products, processes and business models. These not only reduce the negative impact on the environment and society, but also create new market opportunities, differentiating the company from competitors.
   
6. Stakeholder Reputation and Trust: Effective management of ESG data improves transparency and communication with stakeholders, including customers, employees, local communities and regulators. Companies that demonstrate a real commitment to sustainability through verifiable data build trust and reputation, crucial elements in a market increasingly oriented towards responsible choices.
   
7. Support for the Sustainability Strategy: ESG data provides essential information for defining and monitoring companies’ sustainability strategies. They allow you to set clear objectives, measure progress and make continuous improvements, integrating sustainability into the company’s core business.

Highlight – In the banking context, ESG data is fundamental for monitoring the environmental and social impact of financed activities and for ensuring compliance with increasingly stringent sustainability regulations. This data helps banks assess the risk associated with investments and support strategic decisions, aligning them with sustainability objectives.

Conclusion

Embracing ESG is not just an ethical choice, but a strategic move. Companies that invest in sustainability improve their reputation, increase stakeholder trust and position themselves as leaders in a market increasingly oriented towards responsible choices. Furthermore, sustainability can represent a competitive advantage, thanks to greater operational efficiency and the ability to attract consumers and investors sensitive to these issues.

Integrating sustainability into daily operations is not only a moral imperative, but an economic necessity to ensure future resilience and long-term success. Time is a critical factor and companies have a central role in this change: by integrating sustainability into their strategy, they not only protect natural resources, but ensure a more resilient and prosperous future for all. ConclusionThe adoption of ESG strategies is a mandatory step for companies, including financial institutions, which must face the environmental and social challenges of our time. Banca Popolare di Sondrio demonstrates how a structured approach to ESG data management can support regulatory compliance and contribute to sustainable value creation.