The impact of the ESG parameters on the financial system and the European Economy

Following the conclusion of the 4-day processes of the 5th ECB Simulation Conference on 13/12, there will be a series of announcements regarding the speakers who honored us with their presence at the Training Day and contributed to this constructive experience for students. Based on the series of speeches, we would like to warmly thank:

• Ms. Emilia Varfi, CEO of Velos Advisory and member of the Advisroy Board of Get Involved
• Mr. Filippos Bernardis, Vice-President at Asset Stewardship SSGA
• Ms. Thalia Emiri, OF counsel Sardelas Petsa Law Firm

The third panel of Training Day, which reviewed the impact of ESG parameters on the financial system and the European Economy, consisted of Ms. Varfi, CEO at Velos Advisory, Mr. Vernardis, Vice President at Asset Stewardship SSGA and Ms. Emiri, Of Counsel, Sardelas Petsa Law Firm. Firstly, the panel started with a brief explanation of the ESG parameters, as well as how they affect corporate culture, business prosperity, and profitability.

Afterwards, the panel presented the results of a global survey, including 41 institutional investors with a total portfolio of $26 trillion, which show that ESG risks and opportunities play an important role in their investment decisions.

Continuing the presentation, the speakers gave clear examples and suggestions regarding the introduction of ESG in the 3 pillars of the banking prudential framework (Disclosures, Risk Management, Prudential Treatment).

Moving on to business performance on ESG issues, Mr. Vernardis presented an internal rating index (R-Factor) used by SSGA to measure business performance based on ESG risk factors.

Furthermore, the speakers highlighted other organizations that evaluate and grade companies based on their performance on ESG issues, one of which is ISS ESG. Ms. Varfi used the evaluation of ISS ESG to present the performance of Greek banking institutions.

In conclusion, the speakers compared the percentage of ESG-related investments in the EU and Greece, noting that the European average ranges from 1% to 2%, while in the 25 largest listed companies in Greece the average ranges from 0.08% to 0.14%. Additionally, they analyzed the reasons why this discrepancy is observed.