Economic & Financial Evaluation
Inspired by the encyclicals Laudato Si' and Fratelli Tutti
The Earth Charter asked us to leave behind a period of self-destruction and make a new start, but we have not as yet developed a universal awareness needed to achieve this. Here, I would echo that courageous challenge: “As never before in history, common destiny beckons us to seek a new beginning… Let ours be a time remembered for the awakening of a new reverence for life, the firm resolve to achieve sustainability, the quickening of the struggle for justice and peace, and the joyful celebration of life”. (LS 207)
Local conflicts and disregard for the common good are exploited by the global economy in order to impose a single cultural model. This culture unifies the world, but divides persons and nations, for “as society becomes ever more globalized, it makes us neighbours, but does not make us brothers” (FT 12)
A NEW ECONOMIC AND FINANCIAL ASSESSMENT FOR THE COMMON GOOD
The Encyclical Laudato Si’ gave rise to a general reflection on our common life, in a common land with common resources. The universal economic reality is constituted by numerous actors among which the Institutional Investors who, in relationship with the enterprises, have an objective impact on the real economy, affecting and influencing the daily life of families and society. The new Encyclical Fratelli Tutti continues to construe a solution to the growing inequality present in the socioeconomic, ecological and health spheres. It also offers the tools to be used to ameliorate our world on a human, spiritual and environmental standing. The guidelines, based on the living standards and working conditions of human beings, will lead to a mutual relationship between individuals and economic players for better management of the limited resources that remain, as well as the delicate environment in which we live. The Covid-19 pandemic has exposed the fragile stability of the existing social-economic framework. It has expounded the existing inequalities, which have brought about economic crises. Besides creating social tensions, the pandemic has highlighted the fragility of our natural earth. The contagion has further delineated the intimate relationship that exists between our environmental, social, cultural, spiritual, financial, economic assets, and the protection of our health. Consequently, an impairment occurring in one of these constituents is inevitably reflected in the other components.
It is therefore necessary to bring finance back to its reproductive and creative capacity, and the economy to its intended role as a propagator for health and well-being. Today, it is extremely necessary to channel investments towards those companies that commit themselves to work for the common good. By means of Values’ Metrics we have endeavoured to provide an evaluation, measurement and validation tool. This mechanism implements the fundamental principles expressed in Laudato Si ‘, Fratelli Tutti, and the Church’s social doctrine, together with the criteria as propounded by ESG and SRI. Values’ Metrics thus aims to provide a rational evaluation criterion for the international finance infrastructure and its investors, which would be useful for directing investments towards a new economy, and ultimately, towards a new world order. Institutional investors (pension funds, social funds, banking institutions and foundations, insurance companies, etc.) are called to engage in Values’ Metrics in order to relaunch economic development that would be sustained by all the participants of a real economy.
A model having analytical and evaluation capabilities was created, and then tested. This tool proved useful to attract new investments, besides offering support to investors.
The project is based on a questionnaire formulated to collect data on a business sustainability evaluation/self-assessment structural configuration. This questionnaire is inspired by the principles and exhortations expressed in the encyclicals Laudato Si’ and Fratelli Tutti by Pope Francis.
The project is being supported by a scientific committee with multidisciplinary expertise to ensure its consistency with the objectives set and the guiding principles. Various Trade Associations, Pension, and Health Funds are also participating in the Values Metrics’ project.
An online platform has been developed for data collection where companies and investors can access to carry out self-assessments or data consultations.
The project aims to accomplish its work by organizing a series of seminars and events in order to disseminate its methodology and expand the collaborative and membership network.
Core Values is an association that seeks the transmission of values in the digital age, promoting universal values in the fields of education, communication and finance.
FON.TE is one of the most important Italian Pension Funds. Fon.Te is dedicated to workers in the tertiary sector, commerce, tourism and services.
THE ECONOMY FOR THE COMMON GOOD (ECG)
The Economy for the Common Good is a proposal of an economic and social model that aims to reorient the current economic model, based on the maximization of individual benefit, and focus on the service of the common good and the cooperation.