Sustainability and ESG criteria in the investment policies of Italian and European pension funds.

Abstract

At the beginning, the thesis provides an overview of the Italian and European pension systems. It describes the Italian pension system, known as the three-pillar system, and defines the currently existing pension funds through some statistical data provided by COVIP. Then it examines pension funds in Europe, explaining European pension systems and the various pension funds in circulation. Subsequently, the concept of sustainable finance is clarified in relation to ESG factors, continuing with sustainable and responsible investments, which are increasingly developing, especially in the field of pension funds. These funds have a well-defined investment process involving various actors, and they use specific strategies for choosing sustainable investments, which have been carefully listed and described. A significant aspect concerning sustainability and ESG factors within pension funds is certainly European regulation and the path that has led Europe towards environmentally conscious sustainable finance. Therefore, several important regulations on the subject have been reported such taxonomy, benchmarks of sustainability, SFDR, IORP II, and Shareholders Rights II. Finally, the last part delves deeper into ESG factors and sustainability in European and Italian pension funds. Through a series of studies and documents, it aims to provide a clear picture of the spread and characteristics of sustainable investment policies and SRI strategies adopted by various funds, providing a range of statistical data regarding the integration of ESG factors in pension funds.