Impact investments and impact on investments
In a context featuring profound transformations, the Italmobiliare Group interprets global challenges as concrete opportunities for sustainable development and continues to set itself the goal of proactively contributing to real change.
by LAURA ZANETTI and CARLO PESENTI
2024 is proving to be a year of profound transformations, in which complex geopolitical events, including the numerous and dramatic open war fronts and the unknowns generated by the outcome of the US elections, are determining growing international instability and raising questions about the strategic direction that Europe and its member countries will be called upon to take. One of the areas potentially impacted the most by this changing scenario could be the commitment to sustainability, also in light of the announcement by the newly elected President Trump that he wants to increase the production of fossil fuels, a possible prelude to an exit from the Paris Agreement on climate change and, in general, a reduction in America's commitment to safeguarding the climate and the environment.
Even more so in this uncertain scenario, it is essential to underline how sustainability cannot be considered one of the options on the table, nor can it be subordinated to short-term calculations; rather, it is confirmed as an urgent necessity in a context increasingly characterised, also in Europe, by tragedies such as the flood that hit Valencia. And it is again in this scenario that the distinction between companies that in recent years have committed to integrating sustainability into their growth model and those intent on acting only as a temporary response to external pressures, or to comply with regulatory obligations, appears destined to become more acute.
At this crucial moment, Italmobiliare is demonstrating its commitment to strategies that have concrete and measurable impacts on the social, environmental and economic levels, in line with the corporate mission of "[…] actively contributing to global challenges, creating sustainable, innovative and therefore more competitive and resilient businesses”. This ambitious path, which began many years ago, is also producing important results in terms of resilience and performance. The proof of this is the important dividend distributed to shareholders during the first half of 2024, as well as the excellent results recorded by the Group in the first nine months of the year, which show consolidated revenues growing by 19.3%, to 499.4 million euro, and gross operating profit increasing by 65.9%, to 110.6 million euro.
These results are not only an indicator of economic solidity, but also the fruit of a strategy aimed at creating value through “impact investments” and generating “impact on investments”, in line with a management approach designed to maximise the effectiveness of ESG policies.
"Impact investments” are those in companies such as Italgen and CDS-Casa della Salute, which embody in their core business the aim of generating a direct, concrete and measurable impact on the environment and people. Italgen, a historic and dynamically developing company, specializes in the production of green and renewable energy and supports the transition to a low-carbon economy. CDS operates in the healthcare sector with a clear and ambitious mission: “healthcare for all”. Both companies have shown high growth rates in recent years. Italgen has increased the number of its plants from 17 to 36, recording in the first nine months of the current year a gross operating profit that has risen to 26.9 million euro, the best in its history. In five years, CDS has grown from 8 to 34 healthcare facilities between Liguria and Piedmont, covering the entire territory and providing approximately 1 million healthcare services per year. But the value of impact investing goes beyond numbers. It's about building a future where companies are not only economic actors, but also catalysts for change. This is where Italmobiliare takes the lead, demonstrating that growth and sustainability are preconditions for each other. Italgen aims to contribute to the energy transition model, thanks to the progressive increase in installed power and diversification of production sources. Casa della Salute, on the other hand, responds to a growing need for quality health services, helping to improve the well-being of local communities and responding to patients' ever-increasing need for easy-to-access health services at an affordable price.
Of course, due to the different nature of their business, not all companies can operate in sectors capable of generating a high direct impact on society or the environment. Hence the importance of generating “impact on investments” across all Portfolio Companies, regardless of sector and size, through the integration of ESG levers into the business, to contribute to the creation of a more inclusive and sustainable global economy. The results of these actions are reported annually in Italmobiliare’s Sustainability Report. However, within this newsletter we have chosen to tell about a number of projects developed by Group companies that are representative of the many forms that our commitment can take and the impact it can generate. Among these, Caffè Borbone's efforts to promote the evolution and ever greater traceability of the supply chain, as well as social initiatives such as the Mwanyi project in coffee plantations in Uganda. Or Capitelli's SUN Giovanni project, which aims to power the entire production cycle of cooked cured meats with self-produced renewable energy. Or Callmewine, which, after being one of the first Italian platforms to achieve carbon neutrality, has started collaborating with suppliers to reduce emissions along the entire supply chain. Or Officina Profumo-Farmaceutica di Santa Maria Novella, which promotes initiatives in support of culture, in keeping with its centuries-old cultural heritage, e.g. through the sponsorship of the exhibition “Michelangelo, Leonardo, Raphael: Florence, c.1504” at the Royal Academy of Arts in London. Or Tecnica Group, which has adopted an innovative circular approach to recycling its boots.
At the same time, the Group's decarbonisation process is proceeding with conviction, guided by the methodological approach of the Science Based Targets initiative: Italmobiliare’s short-term emissions reduction targets have already been approved and now Callmewine, Capitelli and Officina Profumo-Farmaceutica di Santa Maria Novella have also defined and submitted their short- and long-term greenhouse gas emissions reduction targets for validation. The other companies will follow very shortly.
But since there is no finishing line in sustainability, but only new and increasingly challenging objectives, Italmobiliare has renewed its Responsible Investment Policy and Sustainability Policies, which update those published in 2021. In addition to aligning with regulatory and market changes, the Responsible Investment Policy anticipates future challenges, promoting innovative development models. In particular, an ESG Roadmap is being defined that establishes multi-year paths related to ESG issues for Italmobiliare's Portfolio Companies, with the ambition of promoting their continuous growth in an autonomous and conscious way.
In a context characterized by profound transformations, the Italmobiliare Group interprets global challenges as concrete opportunities for sustainable development and continues to set itself the goal of proactively contributing to real change.