Euronext Sustainability Week, Prime European event for sustainable finance

Euronext Sustainability Week, organised in cooperation with the Sustainable Finance Partners, was not just an event; it symbolised a collective aspiration to create a sustainable future.

Below we discuss the principal key takeaways from the week:

On the first day of the public event, our expert speakers shared crucial insights, spotlighting the role of global investors in spearheading the shift to a sustainable economy. Investors  are actively aiming to counteract environmental, social and governance risks, and are channelling resources towards those issuers that are ready for the challenges and prospects to come. To this end, issuers are capitalising on technology, focusing on reskilling and upskilling, and bolstering their supply chain and community ties. The push towards net-zero goals is imperative, demanding both immediate interventions and a visionary long-term roadmap. Furthermore, the reduction in biodiversity worldwide presents not just environmental hazards, but also significant threats to health and economic resilience. Hence, the financial industry is called upon to evolve, to ensure both transparency and a strong alignment with sustainability objectives.

 

In the webinars spanning the next two days, a number of salient points were made. The appetite for ESG-centric financial tools, such as sustainable ETFs, indices and ESG funds, is increasing. This trend is propelled by both regulatory momentum and an amplified awareness among investors. There is an emerging consensus on the need for uniform definitions in green securitisation to ensure market transparency. Importantly, we must make sure that no industry is sidelined in the sustainability shift, with fixed income being instrumental in sustaining businesses. The energy landscape is pivotal in this transformation. CFOs have emerged as tactical pillars, steering businesses towards net zero  through adept financial strategising. The focus of asset managers on sustainability is intensifying, underscoring the importance of active engagement. As the scenario evolves, we are seeing a pivot from exclusion-based models to comprehensive ESG stratagems. Experts anticipate that ESG securitisation processes will become much more transparent, with asset managers bearing the onus of clearly communicating sustainable finance dynamics to their clients.

For those who wish to view the sessions of the Sustainable Finance Week, recordings of all public sessions are available on Borsa Italiana's website, specifically in the sustainable finance section, at: https://www.borsaitaliana.it/finanza-sostenibile/eventi/euronext-sustainability-week-2023/home-page/home.en.htm.