Opening the proceedings of the SRI Week in the Sala della Regina at the Palazzo Montecitorio, in Rome — that is, at the very heart of Italian politics — undoubtedly sends a signal. A signal directed at institutions, operators and savers alike: responsible finance must be taken seriously. But does Italy excel in this field, or is it lagging behind? What are the most common strategies for investing one's money sustainably? The latest edition of the Eurosif report, which was at the centre of the event held on 15 November, provides some answers.

Some figures on the Italian financial sector

Over the past two years — the Eurosif report notes — Italian financial markets have slowly recovered from the crisis. At the end of 2015, the total assets managed by institutional investors (insurance companies, pension funds, mutual funds and wealth management) reached approximately €1,400 billion. It is a sector dominated by a handful of major players, in particular insurance companies, which — following COP 21, as Francesco Bicciato, secretary general of the Forum per la finanza sostenibile, explained — took a united stance at the international level on environmental, social and governance issues. Pension funds show promising room for growth, even if their weight is still limited: supplementary pension plans manage around €140 billion. Overall, the asset management sector is worth €1,900 billion.

Responsible finance in our country

Among the seven strategies of responsible finance, the most common (in Italy as in Europe) is that of exclusions, which has reached €569 billion: this means that the vast majority of responsible investors cut ethically questionable sectors out of their portfolios. Close behind, with €565 billion, is the selection of companies and states that comply with international norms and treaties, such as the conventions of the UN or its agencies (Unicef, ILO, UNEP). The fastest growth, however, belongs to thematic investments, whose volume has almost doubled in just two years: these are all investments in sectors such as energy efficiency, renewables, health and so on. Good news also comes from the world of impact investing, which "still has smaller assets under management but is growing a great deal, in quantity and above all in quality. If you carry out rigorous assessments of investments, you discover that responsible finance does not necessarily sacrifice profit. And in Italy we have start-ups and innovative sectors that allow for very interesting returns," explains Francesco Bicciato. Engagement, on the other hand, has taken a step back; this strategy involves active dialogue with company management, going as far as intervening at shareholders' meetings. "This strategy grows when policies exist to encourage it," Bicciato warns.

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The laws that support sustainable investment

Over the past two years the legislative framework relating to responsible finance has not undergone any significant changes. In the near future, however, major and minor revolutions are to be expected. By the end of this year, Directive 2015/95/EU will come into force, requiring public-interest companies with more than five hundred employees to publish a sustainability report. In general terms, everyone will have to commit to honouring the pledges made at COP 21. And asset managers will have to respond to the increasingly strong interest in and sensitivity towards ESG (environmental, social and governance) factors.

In this changing world, the contribution of institutions will be fundamental. The Hon. Federico Ginato, for example, cites the bill on financial education, already approved by the Finance Committee and awaiting opinions from other parliamentary committees, in which for the first time a representative of the Forum per la finanza sostenibile sits on the steering committee. Or the decision to include the performance of the BES (Fair and Sustainable Wellbeing) index in the Economic and Financial Document, in order to provide figures that are alternative and complementary to GDP. But, he warns, it is important to keep one's feet on the ground: "Parliamentary initiatives are numerous, but it is essential to establish a framework, otherwise we risk moving in a contradictory manner."

Opening photo: ALBERTO PIZZOLI/AFP/Getty Images