ESG at the ESM

“The ESM provides essential financing to countries in crisis that would otherwise experience more severe setbacks in growth, social conditions, and consequently in areas of ESG performance. As part of the Economic and Market Analysis department, I am researching the interlinkages between ESG and economic growth.”

“The main challenge euro area banks currently face is how to reinvent their business models to remain competitive and factor ESG principles into their risk management and investment strategies. As part of my work in the ESM banking team, I am pleased to see that banks have started allocating more resources into quantifying impacts of climate change on their lending activity.”

“In 2019, the ESM examined and reported on its carbon footprint by identifying and measuring its main sources of greenhouse-gas emissions. The report was a cross- divisional effort with an aim to design and implement reduction measures that enhance the ESM’s environmental performance.”

“Responsible investments are an important driver of global change. By incorporating ESG criteria into our investment approach we help contribute to a better world for future generations.”

“The ESM committed itself in 2019 to eliminating single- use plastics in its offices by year-end 2020 given their detrimental effect on ecosystems. As part of the facilities management team, I am proud to be working to implement this ESG pledge and other measures to improve our environmental impact.”

“Credit rating agencies are joining the broader trend in financial markets of analysing the impact ESG factors have on bond issuers’ creditworthiness. We monitor those developments from an issuer, investor, and sovereign lender perspective.”

“ESG is a topic of heart and mind. Our heart wants a better planet for our kids. Our mind helps to use ESM’s instruments and financial firepower to make reforms socially acceptable, thus improving the functioning of monetary union, while committing for example to the UN-PRI and Zero Single-Use Plastic. Together, we can make a difference.”

“The ESM’s programme database, its history book: Safeguarding the euro in times of crisis: the inside story of the ESM, and the second independent programme evaluation all testify to the importance the ESM as a public institution places on transparency and its efforts to make all relevant information accessible.”

“ESG factors play an important role in ESM risk management when assessing and reviewing issuers and counterparties. The risk management team continues to embed ESG factors in the risk management framework consistent with ESM’s ESG corporate and investment strategies for the benefit of ESM Members including future generations.”

“We see the work in the ESG area inextricably linked to the mission of the ESM, and human resources management as a critical function to innovate and implement more modern ‘S’ practices. We continuously develop and review our HR policies and practices to grow our staff and create positive social change in the workplace.”

“A healthy work environment, free from bullying and harassment where all staff operate with the highest level of integrity, is not created by a Code of Conduct and whistleblower protection alone. It must be paired with clear procedures, training, and awareness-raising – with management walking the talk as role models.”

“Our core financial stability mandate seeks to ensure a more sustainable and prosperous Europe. To do so, our overall ESG strategy is also designed to meet the needs of our investors who, in turn, are defining new global ESG criteria to assess their investment decisions.”

“It has always been important for us to conduct our activities in a conscientious manner. In the context of our ESG efforts, we have worked towards becoming more transparent on our internal practices, for example, in the area of anti-money laundering and corruption prevention as well as the protection of personal data.”

“Diversity and inclusion are core ESM values. We continuously work towards making the ESM a more inclusive workplace. As part of this effort, we organised a series of topical events in 2019 and have begun further defining our diversity and inclusion strategy, which we will start implementing in 2020.”

“Staff representatives are a key element of our internal governance. The ESM has three elected staff representatives, who, for example, solicit staff views, channel concerns to management, and provide input and review staff-related policies. As part of our ESG efforts, we are currently developing our rules of procedure, further detailing our precise role, responsibilities, and governance framework.”