What does ESG mean?

Caring for the environment, people and the responsible use of natural resources are important issues in everyday life and in the financial world, so today we can also talk about sustainable investments. The concept of socially responsible investing is particularly important: it is an approach to investing that uses as criteria for choosing investments, not only financial criteria, but also ESG (Environmental and Social Governance) criteria.

ESG means:

• Environment (environmental aspects);
• Social (social policies);
• Governance (corporate governance practices).

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What is financial risk?

Financial risk refers to the possibility of deviations from the expected investment return. Risk can have positive and negative connotations although it is usually perceived as a probability of loss.

If investors are able to understand the dynamics of the risk-return relationship and assess their personal risk expectations, they will be able to make informed investment decisions and reduce the effects of emotion-driven decisions.

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How to choose the right way to invest?

Before choosing whether and how to invest, investors should consider the aspects that define their financial profile. Among these it is possible to identify: available financial resources, investment objectives, time period, appetite for risk, knowledge and experience in the field of investments.

A sufficient exchange of information with professionals in the financial sector who offer investment advice or portfolio management service can help investors understand their financial profile, identify investment solutions that best suit their characteristics, receive support appropriate to monitor and update the investment strategy over time.

The bank does not provide these services and verifies the knowledge and experience of investors to assess the suitability of the financial instrument requested for the investor, while the investor himself must evaluate other aspects that affect his financial profile to decide on investments.

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Content of this video is published for information and education purposes only on the products and services offered by Intesa Sanpaolo Bank Albania Sh.a. Any information provided in this document does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in investment funds or other financial instruments, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service.