Sustainable finance

The term “sustainable finance” refers to the consideration of ESG issues, i.e. environmental, social and governance issues, in the decision-making process carried out by the financial institutions – banks, investment and pension funds, insurance companies. Sustainable finance is one of the key elements of the European Green Deal – a strategy to transform the European Union into a climate-neutral, climate-resilient, resource-efficient, competitive and fair economy by 2050.

The regulatory package creating a framework for sustainable finance aims at directing capital flows towards companies with sustainable business activities. Companies operating in a sustainable manner (i.e. complying with certain criteria) will be able to count on more readily available and cheaper capital than those with, for instance, high-carbon activities.

Sustainable financing – the scope of our support

AT NOBILI PARTNERS:

• We analyse the company’s activities with regard to compliance with the EU Taxonomy and complementary regulations

The taxonomy (the colloquial name for the Regulation of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment) defines in detail what economic activity qualifies as environmentally sustainable. To be so defined, it must meet four conditions:

– makes a significant contribution to one or more of the six environmental objectives, namely:

(1) climate change mitigation,

(2) climate change adaptation,

(3) sustainable use and conservation of water and marine resources,

(4) transition to a circular economy,

(5) pollution prevention and control,

(6) protection and restoration of biodiversity and ecosystems:

– does not cause serious harm to any environmental objective;

– is carried out in compliance with minimum safeguards,

– meets technical eligibility criteria.

Based on the data provided by the company, we analyse its operations against the criteria set forth in the Taxonomy (including the Delegated Regulations) so that it is possible to calculate what percentage of their revenue, capital expenditure (CAPEX) and operating expenditure (OPEX) is covered and complies with the Taxonomy. In addition, as part of this service, we prepare the content required by law to be incorporated into the company’s listed reports.

As an additional service, we will prepare a sustainability strategy (or audit an existing one). Optionally, we also prepare recommendations, the application of which will lead to an enhanced alignment of the company’s operations with the criteria set forth in the Taxonomy.

• We harmonize the reports working jointly with the company with the requirements of banks, insurers and institutional investors (funds)

An increasing number of financial institutions take ESG criteria into account when making lending or investment decisions. The major sources of this data are sustainability (non-financial) reports and dedicated tabs on company websites. Often these institutions require the company to provide a range of precise data and extensive additional information.

As part of this service, we support companies in compiling data to satisfy the requirements of specific institutions and respond to the questionnaires on ESG issues.

Additionally, we offer an A-Z sustainability reporting service. As part of this service, we prepare and redesign for companies their reports so that the disclosures they contain are aligned with the expectations of their stakeholders – including financial institutions (click here to learn more).

What does your company gain while working with us?

– A professional analysis of your company’s operations in terms of compliance with the EU Taxonomy.

– Ready-made content on environmentally sustainable activities for publication in the annual report.

– Support from experts with long-term expertise on sustainability, with experience working for companies in various industries.