On March 21, the United States Securities and Exchange Commission (SEC) proposed the introduction of rules that will require listed companies to include clarifications regarding the risks associated with climate change and the environment in their reports.
In particular, the impact that these risks may materially have on the continuity and safety of the business, on the activities or on the future financial performance must be assessed and then the introduction of financial reports with a metric that represents climate risks, greenhouse gas emissions. and energy transition projects.
McKinsey talked about this significant change within the financial market control authorities in the podcast on 03 June last.
In the course of this interesting discussion, it was estimated, for example, that by 2025, more than 5 trillion annually will be invested in sustainability globally by 2025. The largest reallocation of capital in history.
In parallel, according to Laura Corb, Senior Partner McKinsey North America, 11 trillion of assets will have to be retired.
The new rules proposed by the SEC that will, as often happens, be followed by the various international control bodies – states McKinsey – will represent a catalyst element for all industrial sectors as regards the adoption of net zero and energy transition policies but above all respect the transparency and accountability of these projects.
Today, for example, Monday 04 July 2022, Banca Mediolanum announced a summary indicator, together with the Catholic University of Milan, which will assess the potential impact on the sustainability of the customer’s overall relationship with the bank itself.
This too represents a first step for the economic-financial sector to adapt to a risk assessment with respect to the scenario of energy transition and corporate sustainability.
The project of Widech S.p.A., an Italian smart greentech company engaged in energy sustainability projects, to build a platform and an objective metric for measuring the environmental impact and energy transition projects of companies, organizations and communities based on the measurement of ‘existing through an infrastructure of environmental sensors, developed with the University of L’Aquila, to provide both locally and in aggregate a true ecosystem for ecological transition, anticipated this trend having developed the ability to provide greentech “key in hand ”for environmental sustainability and the measurement of results.
The philosophy of Widech S.p.A. is to contribute to the governance of the energy transition and sustainability processes from below, through the measurement of objective phenomena that allow the involvement of all stakeholders, not just investors. This epochal challenge to which the recent initiative of the SEC, which effectively confers the leadership of this phenomenon to finance, cannot be left exclusively to this world but is a process that must be managed from the bottom up by all the actors involved.
Finance – like Banca Mediolanum – can be a stimulus and an accelerator for economic actors to adapt more and more rapidly and become increasingly aware and compliant with the ecological transition, adopting ad hoc plans to be able to have access to the world of capital.
Virtuous companies that will undertake this path will be rewarded more and more!
Reference: mckinsey.com