ESG criteria and responsible investments

Long-term success is one of the most important variables for investors. It is an objective around which there is a clear consensus, so the fact of taking into account ESG variables, focused on contributing to creating a more sustainable world, ensures long-term success in an investment portfolio.

Companies that consider good corporate governance and engage in good business practices that drive financial returns and long-term sustainability are also considered sustainable investments. Therefore, integrating information related to sustainability in the investment process can undoubtedly help investors to manage risk and make the most appropriate decisions to invest in new businesses or bet on new initiatives.

In this sense, there are even business model creation tools that integrate ESG variables as key indicators of success and profitability to offer success-oriented investment ideas. Similarly, many investors are already including ESG analysis in portfolio risk reviews.

One of the fundamental points for consolidated businesses and new projects to prosper lies in knowing how to create value for all stakeholders (customers, suppliers, workers, shareholders...). The use of new technologies is changing the way companies relate, both with their workers and with the rest of society, as well as in the way they do business. The most innovative companies with the greatest capacity to integrate new technologies will be the ones that develop best in this new environment.

On the other hand, the voice of the company, its corporate values and its purpose acquire meaning. Never before has a consistent voice, clear purpose, and long-term strategy and vision been more important.

In this changing environment, companies with a clear company purpose that is well aligned with the needs of today's world (and this means having ESG criteria well integrated) will also have a better chance of achieving success.

Clients, suppliers, workers, shareholders, want to see and hear the values that a company defends and they will possibly understand better with those companies that share their same values.

This is one of the main questions we ask ourselves when working with our clients and their businesses. How is your company preparing to participate in the transition towards a zero emissions economy? Or what is your business doing to integrate ESG criteria into its business strategy?

At Free Falling we are convinced that the next 1,000 unicorns (we understand a unicorn company to be one that can reach a valuation of 1,000 million dollars without having a presence on the Stock Market) will be companies that look towards a fairer and more sustainable future. That they put issues such as innovation, sustainability and creativity at their center to generate long-term value for all their audiences and for the world that surrounds them. And we will be delighted to collaborate and work together with them.