Investors, including those not traditionally considered SRIs, are increasingly aware of issues linked to sustainability in business management. In addition to the higher attention they give to aspects concerning ESG and circularity, they also closely follow the concrete actions introduced by companies to promote a development of their activities that respects the indications provided by the United Nations concerning SDGs.
To highlight the aspects of sustainability that characterise its management, in 2016 Hera introduced a new form of accountability, that measures the degree to which Ebitda and investments, both completed and planned, are in line with SDGs (Creating Shared Value, as defined by Michael Porter). The data collected is included in the Group’s financial statements and its sustainability report which, for over 10 years, have been drafted and approved by the Board of Directors at the same time.
To facilitate “independent third-party” analyses concerning the sustainability of the Group’s management, in addition to providing transparent communication, Hera has dedicated strong efforts to assisting various analysts/proxy advisors. This collaborative approach, however, has not always led to the improvements expected in the quality of the studies and analyses published and made available to investors. Studies with out-of-date or incomplete information, and analyses that are superficial and at times incorrect, have indeed appeared repeatedly.
Well aware that clear and transparent information is crucial for shareholders, the Group has recently introduced a Proxy management policy, to select the external parties with whom to engage in a discussion aimed at advancing their knowledge of the company’s ESG aspects. Guaranteeing assistance and providing analyses and timely responses to their queries, Hera has ensured that the information given to investors reflects the company’s actual situation as clearly as possible.
Nine criteria are involved in selecting the Proxies, including market research on investors’ opinions, the types of analyses published in recent years, the experience gained in previous relations, preferences expressed by shareholders and comparisons with other companies included in the FTSE MIB, only to mention a few.
Hera’s policy in covering ESG analysts thus selected 4 ESG firms and 2 indices dedicated to specific issues:
- CDP
- MSCI
- RobecoSAM
- Sustainaliytics
- Refinitiv Diversity & Inclusion Index (D&I)
- Integrated Governance Index (IGI)
Only research carried out by the chosen parties will continue to receive assistance and data verification by the Group. This policy will be scrutinised every 1-2 years, based on the quality of the research published, so that the reports released reflect the company’s disclosure and performance.
