The International Finance Corporation (IFC) found that companies with good environmental and social commitments outperformed their peers by 2.1 per cent in terms of return on equity. Here are three reasons why doing good brings bottom-line benefits and how our Group is taking steps to fulfil them.

2:00 min

Healthier long-term business success

Organisations that focus on environmental, social, and governance (ESG) concerns perform better because they have a lower cost of capital and superior risk profile due to higher valuations. In other words, they tend to be more profitable and can ride out unexpected storms better than any of their competitors. This year, UniCredit will participate in several significant global ESG events to champion the Group's long-term sustainability objectives and share best practices with other industry players.

 

New opportunities

Investments in energy efficiency and renewable projects directly contribute to a company's bottom line. By financing ESG objectives, growth opportunities such as accessing newer markets, expanding commercial offerings to current clients, market differentiation, lower credit risk, improved portfolio strength and increased brand value contribute to financial rewards. At UniCredit, we honour the Paris Agreement and continue to work closely with our clients in transitioning to a low-carbon economy to meet their energy goals for a better working world.

Higher innovation

Companies that differentiate themselves by leveraging ESG targets can solve significant organisational risks while bringing more value to their consumers and revenue streams. At UniCredit, sustainability is part of our DNA, and our goal is to achieve full integration of ESG markers into the bank's core activities. We also hold ourselves accountable by using transparent and insightful ESG metrics to track and share progress and achieve innovative solutions.