Most institutional investors are implementing and aligning with ESG (environmental, social and governance) standards and report very transparently every year on ESG actions and related requirements for the companies they invest in, said Michal Fonea Alexandron, Head of International Development, Material Future, at the Energy Strategy Summit 2022, an event organized by Energynomics.
“The number of ESG-relevant policies is growing, both from governments and companies, and we see the number of ESG-branded ETFs growing exponentially over the last few years, so we’re seeing fantastic growth for anything that’s ESG-branded. Funds are increasingly going to such projects, which are thus becoming very heavily influenced by the ESG brand,” she said.
Policy, and environmental discussions are becoming the focus and there is a lot of pressure on companies, on investors, to adopt ESG.
ESG is tracked across the entire investment value chain, from beneficiary to pension fund managers, investment funds and investee companies, with government pressure from above and civil society pressure from below.
ESG will also mark new investments in renewables, as the new wave of investments is an ESG product, but also with long-term impact. In addition, ESG is becoming a red line to follow, everyone does ESG reports annually, but it’s becoming an impact thing, looking at tangible results, in investments, she explained.
Energy Strategy Summit 2022 was organized by Energynomics with the support of its partners: ABB, BCR, CE Oltenia, Chimcomplex, Eaton, Electrica Furnizare, Electroalfa, EnergoBit, Enevo Group, European Energy, Eximbank, EY, Franklin Templeton, Horváth, ING, Hidroelectrica, Marsh, MET Energy România, Nuclearelectrica, BCR Pensii, Photomate, Powertis, Renomia Gallagher, Schneider Electric, Transelectrica, Volt, wpd.