Why ESG investments matters to AKNO Group
Cover Photo by Alan Rodriguez on Unsplash
The concept of ESG (an acronym that stands for Environmental, Social, Governance) refers to a trilogy of fundamental elements (environmental, social and governance) used to quantify the sustainability and ethical impact of a resource allocation in a specific company or corporation.
The ESG is a benchmark, also known as a sustainability rating, that examines the environmental, social and decision-making impact of an entity (in our case, an international corporate group) doing business in the global marketplace. It is an accurate assessment that reflects an organisation’s interaction with the environment, the community and its own governance system.
There are numerous criteria for measuring the environmental, social and governance aspects of an organisation. These criteria are manifested through a set of operational regulations that should guide corporate strategies to ensure the achievement of predetermined sustainability goals.
Here is the explanation of the three letters of the acronym ESG
- Taking a closer look at the acronym ESG, the ‘E’ encompasses all activities of a company that have an effect on the natural environment.
- The ‘S’ represents the social aspect and the criteria linked to it concern the impact of the organisation on the community in which it operates.
- Finally, ‘G’ refers to issues related to corporate management, which should be guided by good practices and ethical principles.
ESG is an investment, not an expense. As such it has a return in the medium to long term
ESG investing is considered a form of sustainable investment that takes into account not only financial aspects, but also the environment and human welfare. Investing in ESG activities means allocating resources to operational tactics that respect the environment, promote actions that can have a positive influence on the community, including outside the company, and emphasise employee inclusion and well-being.
The growth of ESG investments reflects the growing awareness of the importance of a new, more inclusive development model. It represents a paradigm shift in the investment world, from a purely financial view to a more holistic one that considers the impact of the organisation on a larger scale.
Investing according to ESG criteria is about more than financial gain. It is also about contributing to a more sustainable future by supporting companies that value the environment, society and good governance. This trend is increasingly gaining ground among conscious investors, who see the ESG corporate rating as an indicator of long-term sustainability and financial stability.
ESG is addressing the New in the direction of the Future
ESG represents a new chapter in the evolution of the business world. A chapter where sustainability and ethics are just as important as profit. A chapter that, if read carefully, can lead to a more prosperous and sustainable future for all.
In the real estate, logistics and industrial investment landscape, the importance of ESG (Environmental, Social, Governance) has grown exponentially. For major groups such as AKNO Group, the adoption of ESG principles is not only a matter of responsibility, but also represents a sound corporate strategy.
Our commitment in this area is crucial for the future of our planet and relations with public institutions and even institutional stakeholders.
The importance of the Environmental Challenge for AKNO Group
In recent years, environmental sustainability has become a key priority for investors. According to statistics, the materials used in the construction of Business Parks and industrial warehouses, in compliance with the law, have shown a drastic reduction in environmental impact. For example, the use of eco-friendly materials can reduce CO2 emissions by up to 40 per cent. AKNO Group has invested heavily in these innovations, underlining our dedication to environmental protection.
The importance of a social approach for AKNO Group
Photo by Ian Schneider on Unsplash
Large companies like ours play a fundamental role in society. We take responsibility for ensuring fair working conditions, promoting diversity and inclusion and contributing to the well-being of the communities in which we operate. Investing in social initiatives not only enhances the company’s reputation, but also offers opportunities for long-term growth.
The importance of Governance for AKNO Group
Photo by Charles Forerunner on Unsplash
Sound governance is essential to manage risks and ensure that business decisions are aligned with stakeholder interests. Close cooperation with public institutions and political stakeholders ensures that decisions are made taking into account all aspects of the business, from respect for the environment to the protection of workers’ rights.
Why is ESG crucial for AKNO Group?
AKNO Group‘s green and sustainable vision is not only a moral commitment, but also a strategic choice for the Group’s other companies, such as AKNO Business Parks and AKNO Hotels. Investors today are increasingly attentive to the impact of their financial decisions. A solid commitment to ESG principles can mean greater attraction for these conscious investors.
Why is investing in ESG important to AKNO Group?
This is important because we firmly believe in building a sustainable future for our planet, our society and our stakeholders. We invite all industrial and property investors to contact our office for more information on our ESG commitment.
Would you like to learn more about our ESG commitment and how it can affect your investments?
Contact us!
FAQ – Frequently asked questions on ESG factors
Q: What does ESG mean?
A: ESG stands for Environmental, Social and Governance. However, everyone uses the acronym in English, which is now entering common parlance. It is a way of looking at how well a company respects the environment, people and rules.
Q: What exactly is ESG?
A: ESG is an acronym that represents how a company handles issues related to the environment, society and its internal rules.
Q: How is ESG measured?
A: There are special agencies that analyse and score companies according to how well they follow ESG principles.
Q: Is ESG only about the environment?
A: No, ESG is also about how the company treats people and how it makes its decisions.
Q: Why is ESG relevant for companies?
A: Following ESG helps companies to grow responsibly and gain people’s trust.
Q: How can ESG influence investment decisions?
A: Many investors prefer companies with good ESG scores because they can be seen as more stable and future-oriented.
Q: Are companies with a good ESG more successful?
A: Often yes, because they can adapt better to changes and have good relationships with customers and partners.
Q: Why should an investor consider ESG?
A: Looking at ESG can help you choose companies that are future-ready and operate responsibly.
Q: How can a company improve its ESG?
A: Working to reduce pollution, treating employees well and making transparent decisions.
Q: Does ESG compliance cost companies a lot of money?
A: Initially it may have costs, but in the long run it can lead to benefits such as resource savings and customer loyalty.
Q: Do all companies follow ESG?
A: No, but many large companies are adopting it because they perceive the benefits, both in terms of branding and corporate reputation, and also in terms of moral sustainability.
Q: Do investors really look at ESG?
A: Yes, many investors see ESG as a sign that a company is sound and responsible.
Q: Is it mandatory for companies to follow ESG?
A: It is not a law, but it can influence how investors and customers see a company.
Q: What are the advantages of a company following ESG?
A: It can have a better reputation, save money in the long run and attract more customers and investors.
Q: Is ESG a fad or is it here to stay?
A: Many think that ESG will remain in the future, because it helps companies to be ready for the new challenges ahead and to operate in a sustainable way.
Q: What can I do as an individual regarding ESG?
A: You can choose to support companies that follow ESG principles and learn more about their practices. Awareness is a primary factor for everyone: entrepreneurs, investors and users or customers.
