At Mediobanca, we have undertaken a process to transform our business model by basing medium/long-term growth on the principles of responsible investment.
In fact, we are fully aware that, in the long-term, the variables that impact the evaluations of companies and institutions may not be limited to financial aspects, but must also include the environmental, social and good corporate governance sphere, in order to create value for the investor and for the company as a whole.
Mediobanca Social Impact
Mediobanca SGR offers the possibility of investing in Mediobanca Social Impact, a balanced global investment fund, for philanthropic purposes. The fund is structured in such a way as to guarantee each beneficiary has a recurring flow of revenue over time to allow investors to support the recipient on an ongoing basis at no additional cost. Mediobanca SGR credits back two-thirds of its management fees to the beneficiaries, in line with the market and comparable asset management products. During the FY 2019-2020, approx. €204,000 has been devoted to philanthropic institutions which are parties to the fund.
Beneficiaries signed up to the fund (updated as at 1 January 2020)
Fondazione FAI – Fondo Ambiente Italiano (Italian Environment Fund)
S. Ambrogio per la Cultura Cristiana (S. Ambrogio for Christian Culture) Foundation
Accademia Teatro alla Scala Foundation
Maria Letizia Verga Committee
Fondazione Humanitas per la ricerca (Humanitas Research Foundation)
Anna Meyer Onlus Paedatric Hospital Foundation
San Patrignano Onlus Foundation
Banco Alimentare (Food Bank) Onlus Foundation
Amref Health Africa Onlus Mission Bambini Onlus Foundation
AVSI Onlus-Ong Foundation
Italian Committee for Unicef Onlus
Mediobanca: Green and Sustainable Bond Framework
Mediobanca Group is committed to adhering to the highest environmental and sustainable standards.
Our determination in pursuing ESG targets is also demonstrated by the application of the Green and Sustainable Bond Framework and by our first Green bond issue for institutional investors for a nominal amount of €500m (September 2020).
CHEBANCA!: ESG Funds
CheBanca!, has consolidated its interest in financial products that meet environmental, social and economic sustainability criteria, has included financial instruments in its product offering, UCITS, in particular, which meet these criteria in portfolio selection and management. In particular, as confirmation of its commitment to the environment, CheBanca! has launched green mortgages for people looking to buy or refurbish properties in energy class A or B, with a lower spread than mortgages for other properties.
Furthermore, aware of their clients’ increasing sensitivity to these issues and the potential of instruments meeting these criteria, CheBanca! is monitoring certain ESG strategies, including them in the funds they recommend. Some 39.7% of total client assets are invested in funds with a Morningstar sustainability rating which is at least average, and 42% have been assigned a High or Above Average rating.
The increasing attention being paid to ethical and sustainable products is also discussed at length in the meetings and conference calls with the commercial network.
Outside Italy, CMB Monaco, through its subsidiary Compagnie Monégasque de Gestion, manages funds for various institutional investors who have shown they are increasingly demanding when it comes to ESG issues.
In view of this, all funds managed by CMG are analysed according to ESG criteria, through individual reports provided by CACEIS in partnership with Vigeo Eiris, a leading social and environmental rating agency.
These reports assess the non-financial performance and carbon footprint of the portfolios, allowing the products’ impact to be measured precisely. Furthermore, to expand the product offering addressed to its clients, CMG has overhauled its own Monaction International ESG fund, which invests in international equities based on robust environmental, social and governance criteria for its sector. Finally, according to analysis conducted by Trucost (S&P Global group), the Monaco Eco+ fund has been one of the best performers compared to its peers in terms of environmental impact, CO2 emissions and risk analysis
RAM Active Investments
RAM Active Investments, incorporates environmental, social and governance (ESG) issues in its analysis processes and investment decisions. With its robust proprietary machine learning infrastructure, RAM adopts a systematic process for selecting companies which combines financial and ESG data, using structured information flows (numerical data) and unstructured ones as well (audio, video and text files, images etc.).
RAM AI has launched RAM Stable Climate Global Equities Fund, a fund set up with the aim of addressing the climate emergency by offering investors an active strategy based on solid ESG principles. This innovative approach to ESG issues is the result of indepth research carried out on alternative data leveraging internal, cutting-edge technology capabilities. In view of the growing impact which the climate emergency is having, RAM intends to provide investors with diversified proposals for investments based on low carbon emissions based on a strategy that selects the best low-emission companies without compromising on overall performance. RAM has also set the objective of offsetting the fund’s already low carbon emissions (Scopes 1 and 2) by using CERs (carbon compensation certificates) in accordance with the provisions of the Clean Development Mechanism (CDM), at no extra cost for investors. While many managers prefer a one-dimensional approach to managing climate change issues, simply by reducing the weight of investments in the most heavily-polluting companies, RAM’s method aims to leverage a myriad of different sources of ESG and non-ESG data to identify the best sustainable investment opportunities in each sector.
In September 2015 RAM AI became a signatory to the United Nations’ Principles for Responsible Investment (PRIs), and is also an active participant in the Non-Disclosure Campaign promoted by the CDP (Carbon Disclosure Project). Since 2018 it has also supported the Task Force on Climate-related Financial Disclosures (TCFD), whose main mission is to promote voluntary publication of financial data linked to climate change, providing vital information to lenders, insurance companies, investors and other shareholders.