This research highlights the critical role of credit risks, which have become increasingly important during the transition toward a sustainable economy. It focuses on how Environmental, Social, and Governance (ESG) factors can mitigate corporate credit risks, with particular emphasis on the automotive and power generation sectors: two industries heavily impacted by regulatory compliance and sustainability expectations. ESG metrics are applied to assess, monitor, and manage these risks in publicly listed companies, illustrating how integrating ESG criteria can reduce exposure to financial instability and promote long-term sustainability. This study examines the sustainability strategies, regulatory compliance, and voluntary actions of four key companies in forementioned industries: Daimler, Volkswagen, Enel, and Engie. These companies were selected for their leadership in adopting ESG principles and their strong market presence in transition economies. The analysis integrates external data from governmental organizations and rating agencies, along with internal insights from the author’s internship at Intesa Sanpaolo (ISP) Group, providing a comprehensive evaluation of credit risks associated with sustainability efforts. The research employs both quantitative and qualitative approaches, utilizing financial reports, sustainability disclosures, and ESG ratings from agencies such as MSCI, Moody’s, and S&P Global, supplemented by internal ISP documentation. Additionally, the study reviews European Union regulations and voluntary initiatives, including the European Green Deal and the EU Taxonomy, which aim to drive capital toward sustainable investments. A comparative analysis of the companies and industries are conducted, highlighting their approaches to mitigating environmental and credit risks, while assessing how their strategies align with regulatory frameworks, investor expectations, and best practices outlined leading to market leadership. By leveraging extensive selection of resources, this research enhances understanding of the link between ESG factors and credit risk management in the automotive and power generation sectors. It offers actionable recommendations for improving sustainability integration into credit risk assessments, ultimately supporting long-term financial stability for these industries.
Questa ricerca evidenzia il ruolo fondamentale dei rischi di credito, divenuti sempre più rilevanti durante la transizione verso un'economia sostenibile. Si concentra su come i fattori Ambientali, Sociali e di Governance (ESG) possano mitigare i rischi di credito aziendali, con un'enfasi particolare sui settori automobilistico e della generazione di energia: due industrie fortemente influenzate dalla conformità normativa e dalle aspettative di sostenibilità. Le metriche ESG vengono applicate per valutare, monitorare e gestire questi rischi nelle società quotate in borsa, illustrando come l'integrazione dei criteri ESG possa ridurre l'esposizione all'instabilità finanziaria e promuovere la sostenibilità a lungo termine. Lo studio esamina le strategie di sostenibilità, la conformità normativa e le azioni volontarie di quattro aziende chiave nei settori menzionati: Daimler, Volkswagen, Enel ed Engie. Queste aziende sono state selezionate per la loro leadership nell'adozione dei principi ESG e per la loro solida presenza di mercato nelle economie in transizione. L'analisi integra dati esterni provenienti da organizzazioni governative e agenzie di rating, insieme a spunti interni derivanti dallo stage dell'autore presso il Gruppo Intesa Sanpaolo (ISP), fornendo una valutazione completa dei rischi di credito associati agli sforzi di sostenibilità. La ricerca impiega approcci sia quantitativi che qualitativi, utilizzando rapporti finanziari, divulgazioni di sostenibilità e rating ESG da agenzie come MSCI, Moody's e S&P Global, integrati da documentazione interna di ISP. Inoltre, lo studio esamina le normative dell'Unione Europea e le iniziative volontarie, inclusi il Green Deal Europeo e la Tassonomia UE, che mirano a indirizzare i capitali verso investimenti sostenibili. Viene condotta un'analisi comparativa delle aziende e dei settori, evidenziando i loro approcci alla mitigazione dei rischi ambientali e di credito, valutando come le loro strategie si allineino ai quadri normativi, alle aspettative degli investitori e alle migliori pratiche che portano alla leadership di mercato. Grazie all'ampia selezione di risorse, questa ricerca arricchisce la comprensione del legame tra i fattori ESG e la gestione dei rischi di credito nei settori automobilistico e della generazione di energia. Offre raccomandazioni pratiche per migliorare l'integrazione della sostenibilità nelle valutazioni dei rischi di credito, supportando in ultima analisi la stabilità finanziaria a lungo termine di questi settori.
The influence of ESG factors on corporate credit risk in transition economies: a study of the automotive and energy sectors
Ozyurek, Imran
2023/2024
Abstract
This research highlights the critical role of credit risks, which have become increasingly important during the transition toward a sustainable economy. It focuses on how Environmental, Social, and Governance (ESG) factors can mitigate corporate credit risks, with particular emphasis on the automotive and power generation sectors: two industries heavily impacted by regulatory compliance and sustainability expectations. ESG metrics are applied to assess, monitor, and manage these risks in publicly listed companies, illustrating how integrating ESG criteria can reduce exposure to financial instability and promote long-term sustainability. This study examines the sustainability strategies, regulatory compliance, and voluntary actions of four key companies in forementioned industries: Daimler, Volkswagen, Enel, and Engie. These companies were selected for their leadership in adopting ESG principles and their strong market presence in transition economies. The analysis integrates external data from governmental organizations and rating agencies, along with internal insights from the author’s internship at Intesa Sanpaolo (ISP) Group, providing a comprehensive evaluation of credit risks associated with sustainability efforts. The research employs both quantitative and qualitative approaches, utilizing financial reports, sustainability disclosures, and ESG ratings from agencies such as MSCI, Moody’s, and S&P Global, supplemented by internal ISP documentation. Additionally, the study reviews European Union regulations and voluntary initiatives, including the European Green Deal and the EU Taxonomy, which aim to drive capital toward sustainable investments. A comparative analysis of the companies and industries are conducted, highlighting their approaches to mitigating environmental and credit risks, while assessing how their strategies align with regulatory frameworks, investor expectations, and best practices outlined leading to market leadership. By leveraging extensive selection of resources, this research enhances understanding of the link between ESG factors and credit risk management in the automotive and power generation sectors. It offers actionable recommendations for improving sustainability integration into credit risk assessments, ultimately supporting long-term financial stability for these industries.| File | Dimensione | Formato | |
|---|---|---|---|
|
2024_12_Ozyurek.pdf
accessibile in internet solo dagli utenti autorizzati
Descrizione: Master Thesis Imran Ozyurek
Dimensione
2.41 MB
Formato
Adobe PDF
|
2.41 MB | Adobe PDF | Visualizza/Apri |
I documenti in POLITesi sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
https://hdl.handle.net/10589/229614