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Four key points of finance for the transformation of a company

Cuatro puntos clave de finanzas para la transformación de una empresa
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There are several points to take into consideration when trying to achieve the financial sustainability of a company. However, among all these there are some of the utmost importance that must be present to really achieve the objective.

Define your motivations and investment philosophy

Organizations must first define the reasons why they want to integrate sustainability factors into their investment processes. All key internal stakeholders, including senior and investment teams, should be involved in defining the investment philosophy and creating a governance system to manage it.

Define your strategy

Companies interested in transforming towards sustainable investment must determine what their investment strategy will be, as well as the goal, how it will be achieved and in what time. In our country we are still in its infancy on this issue, so the implementation time factor will be crucial.

Identify your implementation approaches

Investors can choose the approaches that best reflect their investment philosophy. There are five main approaches and tools, commonly used in combination with each other: Constraint Screening, Integration of Environmental, Social and Governance (ESG)/(ESG) Criteria, Thematic Investments, Impact Investing and Company/Issuer Engagement. Representing a set of dynamic implementation tools, these approaches allow asset owners to tailor their sustainable investing activities by asset class and adjust criteria over time.

Design your operating model

Good governance forms the operational backbone to support implementation, and to define, communicate and achieve sustainable investment goals. A typical governance model involves an oversight group comprising any or all of these functions: Chief Executive Officer, Chief Investment Officer, Investment Committee, Risk Committee and Board of Directors, often supported by dedicated specialists.

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