Ομιλία: «Επενδύσεις εστιασμένες σε παράγοντες ESG: η ολοένα αυξανόμενη σημασία μη-οικονομικών παραμέτρων» Δρ Αγγέλικα Γκούσκου, Μέλος, ΕΣΕΔ, Συν-Ιδρύτρια, Corporate Governance Hub & Managing Partner, Δικηγορική Εταιρεία "Σελέκος-Γκούσκου και Συνεργάτες"

1. 2nd GREEK CORPORATE GOVERNANCE SUMMIT
ESG-Centric Investing: The rising significance of non-financial
metrics
Dr. Angelika Gouskou

2. A. THE INITIATIVE STEP: SUSTAINABILITY
 UN Sustainable Development Goals (SDG) set in 2015.
 Several companies started measuring, disclosing and managing sustainability risks and
opportunities.
 New metrics have emerged as compelling elements for companies that wish to generate value.

3. B. ESG
 Environmental, social and corporate governance considerations (ESG) that can
impact a company’s ability to generate value became crucial.
 The increasing demand for information requires corporate non-financial disclosure
and transparency on all three ESG considerations.
 Nowadays such disclosure is required at a policy level through guidelines like the EU
Non Financial Reporting Directive - global framework were formed.

4.  Given that most of corporate value now is traced to intangible rather than tangible assets, human,
natural and social capital all represent important ESG-related information that investors need to
have.
 Globally, the percentage of both retail and institutional investors that apply environmental, social,
and governance (ESG) principles to at least a quarter of their portfolios increased from 48% in
2017 to 75% in 2019 (BNP Paribas, “The ESG Global Survey 2019”, 2019).

5. C. FRAMEWORK
 Disclosure requirements are expected to be expanded in the future – the Non-Financial
Reporting directive is currently under review, with upcoming reforms and improvements.
 Under the framework of the EU Green Deal, companies and financial institutions will be
expected to improve their disclosure of non-financial information, providing better ESG
information to investors and markets.
 A key challenge that remains is the lack of standardization in measuring and reporting ESG
information.

6. D. ATHEX ESG GUIDE
 The recent ATHEX ESG Guide is intended to function as a tool to help companies determine
the material ESG issues in their industry and sector and to ensure that companies report on ESG
issues that are directly related to their ability to generate value in the long-term.
 The reporting guide is based on practices outlined in international sustainability guidelines like
SASB's (Sustainability Accounting Standards Board) industry specific standards and reporting
frameworks like GRI, CDP and the Greek Sustainability Code, as well as existing ESG
disclosures in the Greek market.
 Definition of ESG given in the ATHEX Guide

7. What is ESG?
The term ESG encompasses the wide set of environmental, social and corporate
governance considerations that can impact a company's ability to generate value. In a
corporate context, it is used to refer to the incorporation of non-financial considerations
into business strategy and decision-making. While ESG factors are oftentimes called
non-financial, they are linked to business competitiveness and the way in which a
company manages them has financial consequences.

8. E S G
E n v i r o n m e n t a l criteria may include a
company’s energy use, waste, pollution, natural
resource conservation, and treatment of animals.
The criteria can also be used in evaluating any
environmental risks a company might face and
how the company is managing those risks.
With regard to g o v e r n a n c e,
investors may want to know that a
company uses accurate and
transparent accounting methods and
that stockholders are given an
opportunity to vote on important
issues. They may also want
assurances that companies
avoid conflicts of interest in their
choice of board members, don't use
political contributions to obtain
unduly favorable treatment and, of
course, don't engage in illegal
practices.
S o c i a l criteria are related to society and how the company
treats individuals whether it respects their rights and the well
being of the community. The criteria concentrate on labor
matters and diversity, working conditions, local communities,
health and safety etc.

9. Food for thought:
A non-financial factor of today,
may be a financial one in the
future.

10. Thank you.