In the composition of the assets managed by the Italian Pension Funds, the so-called ethical investments - which analyze the social and environmental consequences in terms of financial analysis, excluding, for example, shares of companies that produce weapons, tobacco, alcohol or that do not respect the rights of man – still occupy a marginal position. Yet, according to some studies cited today during the conference "The ethical investments of pension funds" organized by Assoprevidenza in Rome, the use of SRI (Socially Responsible Investments) parameters in the selection of investments is often able to protect against a series of risks to which traditional investments are exposed, and at the same time to guarantee satisfactory returns in the medium-long term, even higher than those returned by investments that do not consider social responsibility.
“Pension funds and pension funds – stated Sergio Corbello, president of Assoprevidenza – must operate without ideological schemes. Nothing prevents the complementary forms from including socially responsible investing criteria for the choice of assets between the limits of the various mandates to the managers. In this sense, virtuous experiences already exist and there is no shortage of financial market operators able to respond adequately to the requests of pension schemes".
In Italy, the market for aesthetic financial products is approximately 90% retail (private investors) unlike what happens in Europe where 94% is in the hands of institutional investors. The data comes from Eurif, the European Sustainable Investment Forum. According to Eurif, the resources invested in Europe with socially responsible criteria doubled between 2007 and 2009; however, Italy is at the bottom of the ranking, representing around 2% of the European market for socially responsible funds.
Currently the complementary forms have no obligation to invest according to ethical selection criteria, but must declare whether and to what extent they take environmental, social and ethical aspects into consideration in their investment policies and in the exercise of voting rights (Legislative Decree Legislative Decree 252/2005, art.6, paragraph 13).
Industry operators expect rapid growth in ethical investments, even if some barriers that hold back its development need to be removed, such as the uniformity of views on the SRI parameters to be adopted. Many expectations are placed in the minesterial decree (DM 703/96) which establishes the limits of the investments of the pension funds. The decree is currently in the hands of Economy Minister Pier Cralo Padoan, with the hope that it can be adopted quickly.
“It is to be hoped – commented Corbello – that the new ministerial decree 703/96 gives the complementary forms greater freedom of maneuver in the field of investments, entrusting them with a more active role in risk control and favoring the development of investments in sectors such as 'environment, research, innovation, infrastructure, athletic energy, support for SMEs”.
Socially responsible investments are less exposed to volatility, i.e. to fluctuations up and down in prices, and therefore represent, in times of financial crisis, one of the possible solutions to the problem of containing the risk of an investment without penalizing the return. However, they require great attention from the pension investor, both in the initial investment phase and in the control phase. The aspects to be monitored therefore are therefore the destination of the funds, the governance of the intermediaries and the recipients of the funds.
