There’s a race going on with companies vying for their harmonization with important ESG criteria within the last year. In particular, banks, major energy and telecommunications companies are leading the fight to implement the ESG [Environmental, Social (Social) and Corporate Governance] criteria, according to a survey.
The prevailing trend, according to the research, is that although the vast majority of listed large companies, especially in the 3 industries mentioned, already use some reliable rating standards, the ratings they receive from reputable rating agencies (ESG Rating agencies), such as CDP & MSCI, is not yet at a high level, with a few exceptions. This has a direct consequence on the confidence shown by investors in Greek companies.
These were some of the main findings of the Center for Sustainability (CSE) Annual Survey conducted annually by the Sustainable Development Reporting Observatory since 2012 with the support of the Corporate Responsibility Institute (CRI).
The annual survey of the Sustainability Center (CSE) and the Exhibition Observatory evaluates the practices of publishing sustainable development information and ESG criteria by Greek companies during the period 2019-2020. At the same time, this year’s research is the 2nd research that focuses on recording the targeting practices for the Sustainable Development of Greek companies and the reduction of their carbon footprint, in the context of climate change. At the same time, it records the participation of Greek companies in the most widespread international ESG Ratings during the respective period (2019-2020).
The conclusions
The following are among Important conclusions from the ESG survey in Greece:
-Only a portion of the Greek Listed Companies are evaluated by international ESG Ratings, and they are attractive to investors, although this has increased dramatically compared to 2020, as many more companies have now entered the radars of international rating companies. Of the 110 companies that issued a sustainable development report for 2019-2020, 32 have a presence in one or more ESG Ratings with the majority having relatively low to medium ratings. Of these 32 companies, 75% (24 companies) are part of the new ESG Index of the Athens Stock Exchange, although there are differences between the ratings of international companies and those of the ESG Index of the ASE.
-The goal of companies to reduce their environmental footprint is a very important parameter of their strategy. The maturity of companies in sustainable development is expressed through the existence and publication of quantitative targets, versus qualitative ones. The survey found that 21% of reports include quantitative targets related to climate change, while it is worth noting that a company has stated its goal of climate neutrality. These goals are to reduce greenhouse gas emissions, reduce energy consumption, save fuel, reduce energy intensity, use renewable energy sources.
Despite the significant communication made by companies on ESG issues in recent times, the reality shows that with few exceptions most listed companies have a long way to go in terms of compliance with ESG criteria in order to become more attractive to investors and have easier funding opportunities in the near future.
-For the training of executives dealing with financing issues, the Sustainability Center is organizing, on November 25 a specialized training program “ESG Impact and Investing” for CFOs, Corporate Governance Executives, IR and Fund Managers, certified by the international organization CPD.
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