RATINGS FROM S MALL AND M EDIUM E NTERPRISES - E QUITA AND A LT LTIS - - PDF document

JOINT PRESS RELEASE EQUITA AND ALTIS – UNIVERSITÀ CATTOLICA 1

EQUITA AND ALTIS PRESENT THEIR STUDY ON SUSTAINABILITY AND ESG

RATINGS FROM SMALL AND MEDIUM ENTERPRISES

• EQUITA AND ALT

LTIS UNIVERS RSITÀ TÀ CATT TTOLI LICA JOINED FORCES TO TO IDENTI TIFY A NEW NON-FINANCIAL RATI TING METH THODOLOGY FO FOR R SMES

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THE RE RESULT LTS OF TH THE STU TUDY “SUSTA TAINABILI LITY: AN AD-HOC ASSESSMENT FOR R SMES” WERE RE PRE PRESENTE TED TO TODAY AT T THE

CATTO

TOLI LICA UNIVERS RSITY O Y OF MILAN Milan, an, 9th

th Sept

ptem embe ber 20 2019 19 Equ quita, the leading Italian independent investment bank, and and Altis, the Graduate Business School and Society of the Università Cattolica del Sacro Cuore, tod

• day

ay host sted an n ev event nt to

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pres esent ent the he resu sults s of thei eir st stud udy on n ESG rat ating ngs for for SMEs s an and d to fost foster er the he di dial alog

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e on

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sus ustai aina nabi bility bet between en cor

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ates es, , ins nstitut utions ns a and nd in invest estor

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Nowadays well-established methodologies are often used to assess the company’s ability to create value, generate

• pportunities and limit risk exposure. Those methodologies should not consider only economic and financial metrics but

also ESG performances (environmental, social, governance). The study “Sustainability: an ad-hoc assessment for SMEs” presented today at the Cattolica University of Milan inv nvest estigat ated ed ho how ESG rat ating ng met etho hodo dolog

• gies

es cou

• uld

d impr prov

• ve

e the e rat ating ng pr proc

• cess

ess for for sm smal all an and d medi dium um ent nterpr prises, ses, al also

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ncour urag aging ng SMEs to v

• val

alue t e thei heir st streng ngths hs f from

• m an E

n ESG per perspec ective. The study was conducted through a questionnaire prepared by Equita and Altis Università Cattolica. The questionnaire was drafted based on evidences collected following a series of interviews with the managements of companies that are already object of ESG rating assessment and was submitted to more than 30 companies with a market capitalization between Euro 250 million and Euro 4 billion. The study highlighted some of the issues that occur during the ESG assessment of small and medium enterprises: from the difficulties to interact with rating agencies (whose ratings are often perceived by assessed companies as not reflecting what has been done in terms of sustainability) to the lack of SMEs’ formal and public policies on sustainability matters, which are the only ones taken into consideration by large rating agencies. The results of the study were key to estimate the valuation gap resulting from a lack of formal oversight by SMEs of ESG data and policies. The results also urge the introduction a “social premium” metric in the rating process to value the social impact that small and medium enterprises have on the communities in which they operate. The presentation of the study was followed by a round table on sustainability with Mar Marcel ello Bianc nchi hi (Deputy-Head, Assonime), Ro Rober berto Cel elot

• t (CFO, Zignago Vetro), Simon
• ne Chel

helini ni (Head of Corporate Governance, Sustainability and Activists Strategies, Eurizon), Mar aria Lau aura Gar arofal falo (CEO, Garofalo Health Care) and Bar arba bara Lung nghi hi (Head of Primary Markets, Borsa Italiana). Pa Paol

• lo
• Cioc
• cca (Consob Commissioner) and Pa

Patrizia a Griec eco (Chairman of the Corporate Governance Committee and Chairman of ENEL) followed with their closing remarks. Based on the findings highlighted in the study, Equita is planning to launch a set of initiatives to collect information about sustainability of SMEs, support its asset management activities and best inform investors’ decisions.

JOINT PRESS RELEASE EQUITA AND ALTIS – UNIVERSITÀ CATTOLICA 2

Equita will extend the questionnaire used in the study to the companies covered by its Research Team and will bu build d a a da datab abas ase e to to hel elp p inv nvest stor

• rs better

er und nder erst stan and d ho how the hese se compa pani nies s fac face e ESG cha halleng enges

• es. Equita will also promote the

qu quest estionn nnai aire as s a a key ey too

• ol to

to hel elp cor

• rpor
• rat

ates es, especially small and mid-companies, ide dent ntify fying be best st pr prac actices s to

• be

be ado dopt pted d in n thei heir ESG st strat ateg

• egies. Equita itself committed to fill out the questionnaire and publish the results. Thanks to the close

collaboration between Equita and Altis Università Cattolica, the da data gat ather ered will enr enrich h the he infor nformat ation

• n av

avai ailabl ble on

• n

SMEs’ man anag agem ement ent o

• f

f ESG top

• pics, in addition to defi

define ne n new ew r rat ating ng mod

• del

els. Finally, ESG fa factor

• rs

s will bec become inc ncreasi asing ngly ly impo portan ant in n the he inv nvest stment ent dec ecisi sions ns of Equita’s po portfol

• lio
• man

anag agem ement nt, pr privat ate debt ebt and nd pr privat ate e eq equi uity tea

• eams. As a consequence, the companies that complete the ESG questionnaire provided

by Equita will be in a better position to be selected as potential investments by Equita, having already supplied their information about sustainability. And ndrea Vismar ara, Chief Executive Officer of Equita, commented: “We are firmly convinced of the key and growing importance of sustainability in the financial domain. The relevance of sustainability is threefold for Equita: first of all, as we are among the Italian leaders in research on listed companies, we need to fully understand how the different ESG factors affect the valuation of a company to best support investors’ investment decisions; secondly, with our alternative asset management activities we need to invest the financial resources of our clients in companies that conduct their business paying attention to sustainability; thirdly, we are a listed company too and we need to be attentive to ESG factors, promoting a sustainable business model that remunerates our shareholders”. Vismara also added: “Combining our competences with an academic institution like Altis made possible the realization of the study presented today and the definition of a questionnaire to be used by companies as a supportive tool to identify the best practices to be implemented in their ESG strategies. We are really satisfied for the close collaboration we have had with Altis and we are proud of continuing such journey together”. Vito Mor

• ram

amar arco, Director at ALTIS Università Cattolica, declared “At ALTIS we think that to make a transition towards sustainable development, the financial world must take responsibility too. This is so important that, being an academic institution, we decided to design specific courses in partnership with the leaders in the financial field, and aimed at training professionals designated to promote such values to companies and investors. It is of uttermost importance that a variety

• f organisations and institutions are involved in this process, in order to disseminate the best practices in sustainable

finance within the entire Italian ecosystem. The research developed with Equita is therefore highly valuable to the School, for it brings together diverse expertise with the purpose of making a real impact on the structured development of sustainable finance and guiding the investors towards a more sustainable future. The high attendance at today’s event and the outcomes of the debate, tell us that we are on the right path.”

JOINT PRESS RELEASE EQUITA AND ALTIS – UNIVERSITÀ CATTOLICA 3

* * * Equ quita G a Grou

• up

Investor Relations – Andrea Graziotto ir@equita.eu Clos

• se to

to M Medi dia Ufficio Stampa – Adriana Liguori adriana.liguori@closetomedia.it Altis s – Uni niver ersi sità Ca Cattol

• lica

Silvia Persi silvia.persi@unicatt.it

Equita is the le leadin ing Ita talia ian in independent t in inve vest stment t bank, reference partner of Italian companies and institutional investors. Thanks to its 45 years of experience, Equita can offer a clear and focused business model: Glo lobal l Markets ts, with its Sale les & Tradin ing and Pr Proprie ieta tary Tradin ing business lines, offers brokerage on equities, bonds, derivatives and ETFs for domestic and international institutional customers, market making, specialist and liquidity provider

• services. To such activities, Equita offers a high profile Inve

vest stment Bankin ing platform, dedicated to advisory to companies and financial institutions. The Alte lternative ve Asse set Management division, which provides traditional portfolio management along with innovative private debt and private equity portfolio management, such as the special acquisition vehicle (SPAC), completes the range of special and synergic services offered. Then, all business lines are continuously supported by a Research te team recognized for its excellence. Independent t advi vice ce and deep knowledge of f ca capita tal l markets ts grant Equita credibility among domestic and international institutional investors, ensuring a unique positioning in the Italian market, with a focus on mid & small caps. ALT LTIS is the Graduate School Business and Society of Unive iversità ità Ca Catto ttoli lica del l Sacr cro Cu Cuore that focuses on management t and entr trepreneursh ship ip fo for su susta tain inable le deve velo

• lopment. Since 2005, its foundation year, ALTIS has been researching and promoting new knowledge on entrepreneurship and

management aimed at the creation of shared value. Research is the basis and driver of the School’s activities. ALTIS supports professionals, managers and entrepreneurs with training courses designed to provide them with essential skills for the development of their businesses and the capability to make impactful decisions with positives outcomes on their company and society as a whole. In 2017, ALTIS launched a Master’s Degree in Finance with a focus

• n sustainable finance, the first of its kind in Italy. This Master responds to the growing demand of new professionals who are able to evaluate both

investments and the economic and financial management of companies and institutions.