Ethical and Sustainable Finance has achieved a new important result in Italy.
At the end of 2016, the Italian Parliament became the first in Europe to introduce the definition of ethical and sustainable finance in the Consolidated Banking Act. Now, in line with this recognition, the Italian legislature with Law no. 205 of 27/12/2017 is further enhancing the role of organisations like Banca Etica: the possibility for public administrations to acquire or keep shareholdings in ethical and sustainable finance institutions.
This is an important opportunity by way of derogation from the more general indication of divesting any non-equity or strategic holding by public administrations. Specifically, the law states that public administrations can acquire or keep shareholdings, not exceeding 1% of share capital, in ethical and sustainable finance institutions.
This is an important milestone for GABV member Banca Etica and is the result of the work of many people, as it recognises the choice made by many public administrations to become its shareholders in the pursuit of a general interest, with the goal of educating about the responsible use of money and providing a constructive vision of finance that is close to the true needs of people and the environment.
Thanks to this recently approved amendment, Banca Etica can continue to initiate or maintain significant collaborations with local authorities that will enable it to give even greater substance to their statute which commits them to directing money collected towards promoting the common good, by combining a national and international vocation with a strong local grounding in many areas of Italy and Spain.
Ethical and Sustainable Finance has achieved a new important result in Italy. Now, it is Banca Etica’s hope that this journey can extend beyond Italian borders, relaunching throughout Europe that process of recognition of the role of social inclusion, economic development and sustainability that ethical finance organisations promote. They believe that a path in this direction towards Europe has become indispensable for Banks and Microfinancial Institutions socially and ethically oriented to do their work as best they can, to involve more and more citizens in this great project of ethical and sustainable change.