ISR: Profitability and financial responsibility


Intelligence with a perspective in the service of investments is not a new concept. The application of ethics when valuing companies has been done so far using exclusion criteria, that is, diverting investments on corporations whose focus was on the production and trade of arms, nuclear energy, games, pornography, alcohol and tobacco, child employment, etc …

But now the investments go a step further and there is talk of "sustainable and socially responsible investments " (ISR). The main European investment forums define it as a long-term investment approach that integrates environmental, social and governance criteria. It is an investment philosophy that can be applied to all financial products: investment funds, individual and employment pension plans, life and savings insurance; societies and money of venture capital.

For Mercedes Sanz Septién, Director of the Insurance and Social Security area of ​​Fundación MAPFRE, "SRIs are important because they seek to transform society, they are not philanthropy and they are not only focused on companies but on everyone."

Under this paradigm, sustainable and socially responsible investments (sustainable because they apply to the environment and social because they try to improve people's lives) are the patient subject of every community that supports / invests in companies, societies, organizations or entities that must be Respectful of humanity. And is that betting on ISR is not synonymous with losing cost effectiveness, If not the opposite.

isr

Origin

In 2006, the UNEP financial initiative and the UN Global Compact created the Principles of Responsible Investment of the UN which then had more than 1,400 signatories. Some principles that are maintained 12 years later and that try to incorporate the ESG (Environmental, Social and Governance) issues into the processes of analysis and decision making. In incorporate ESG issues into property practices and policies. In seeking a transparent disclosure of ESG issues by entities. To promote the acceptance and application of the principles. To improve the effectiveness of its application and to report the activity and progress in their application.

Spain vs Europe

In 2001, the European Forum for Sustainable Investment under the auspices of France, Germany, Italy, Holland, United Kingdom, Belgium, Spain and Switzerland; But each country has its own association to promote socially responsible investments. In 2009, Spain created Spainsif, which is currently composed of 60 associates comprising unions, management entities, non-profit organizations or service providers. Of these, the managers of employment pension plans are the entities that are most involved.

In 2011, the Law of Sustainable Economy For the first time, it requested a regulation on the dissemination of information on pension fund investment policy and in 2016, a Directive approved by the European Parliament and the Council of the EU, stated that member states must ensure that pension funds employment disclose information about its relevance and materiality. That is, transparency is claimed as a measure of work.

We therefore have investment policies that benefit everyone. Not only because they work sustainability and ethics, but because prevent irregularities in fiscal management and they demand the cleaning of the processes. Investments with awareness that generate beneficial impact on society and that allow capital to be aligned with positive impact values. Today, among the concerns of society, is to live in accordance with the ethical principles that each person has and apply this coherence to all areas of life.

To achieve this, it is important that, when it comes to consuming and investing, we know how companies interact with the environment in which they are present and analyze whether this suits or not the social commitment of each person. For this reason, Fundación Mapfre recommends applying ethics and social conscience when investing.



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