- Approved by its Board of Directors, the initiative includes the explicit integration of ESG (Environmental, Social and Governance) factors throughout the entire investment process, in line with best practices and the Sustainable Development Goals (SDGs).
The Board of Directors of Sodena, the public development agency of the Government of Navarre, has recently approved its Responsible Investment Policy and Sustainability Strategy with the aim of contributing to the achievement of specific Sustainable Development Goals (SDGs), both through its financial support activities and its day-to-day operations.
With the support of a consultancy specialized in sustainability, Sodena has continued to advance the commitment it announced just over a year ago. “Our goal is to position ourselves among national and regional institutions with a stronger approach to incorporating Environmental, Social and Governance (ESG) criteria into our daily activities,” explained its Managing Director, Pilar Irigoien.
Sodena has identified its “priority” SDGs, namely those where it seeks to generate a positive impact. In environmental matters, the main goals are related to Affordable and Clean Energy (Goal 7), Responsible Consumption and Production (Goal 12), and Climate Action (Goal 13). On the social front, the focus will be on Gender Equality (Goal 5) and Decent Work and Economic Growth (Goal 8). In terms of Corporate Governance, its actions will be linked to Goal 16: Peace, Justice and Strong Institutions.
LONG-TERM SUSTAINABLE VALUE
The objective of this policy is to align Sodena’s financial flows with the achievement of the Sustainable Development Goals and the fight against climate change, thereby contributing to the creation of long-term sustainable value.
The Responsible Investment Policy applies to the entire investment process, from the preliminary assessment of projects and their ongoing monitoring through to exit or divestment.
In line with this approach, and to obtain an initial assessment of the ESG status of its portfolio, Sodena has developed and distributed a questionnaire that will serve as the basis for a Responsible Investment Dashboard. This tool will help ensure better management of environmental, social and governance risks and opportunities.
For example, environmental criteria include regulatory compliance, environmental management and energy efficiency, among other aspects. On the social side, factors such as job creation and the existence of mechanisms that promote diversity, talent attraction, equal opportunities, and engagement with the community and other stakeholders are taken into account. Governance criteria include areas such as crime prevention, anti-corruption policies, intellectual property protection and cybersecurity.
“In addition to financial returns, we pursue responsible returns, understood as the positive impact generated not only within the company itself but also in its wider environment, creating more sustainable value,” stated Pilar Irigoien.
COMMITMENT TO INTERNATIONAL STANDARDS
As a demonstration of this commitment, the public company will become a signatory to the United Nations-supported Principles for Responsible Investment (PRI). These principles require, among other commitments, the implementation of a responsible investment policy and the annual preparation of transparency reports.
Likewise, following its adherence to the United Nations Global Compact and its commitment to the Compact’s ten principles, Sodena will prepare the corresponding progress reports to demonstrate compliance and progress.
SUSTAINABILITY STRATEGY
In addition, Sodena has developed a sustainability dashboard that applies across the entire organization. This document includes a series of initiatives and action lines to be implemented over the next three years (2022-2024), together with monitoring indicators for each action undertaken.
Furthermore, to reinforce all of the above, a best practices manual on sustainability and resource optimization will be developed.
