International good governance affects everyone, individuals, businesses, local and territorial communities, nations and alliances.

TheUN has for years been an engine for the development of a planetary human culture, centered on values and rights, proclaimed in treaties and declarations that not everyone has chosen to subscribe to :
From human rights to children's rights, from tax evasion to corruption issues, there are numerous general issues that are dealt with on a daily basis by International Institutions, and not always well received by States and Businesses.

Sustainable funds have a responsibility to carry forward this culture of legality and demand compliance with minimum quality standards from all issuers of their investments by acting proactively through engagement actions.

Sustainable funds set qualitative and quantitative goals for the purpose of guiding the behavior of Society and the countries where they invest so that it cannot harm their reputations and result in major money losses.

Using the U.N. sanctioned country list, banning fiscally non-transparent countries, using international corruption rankings or "not free" states, these are some of the courses of action that funds can employ and monitor over time to evaluate country action. In fact, the adoption of ESG standards to assess international investment opportunities are a powerful weapon to convince laggard states to sign major international treaties and make concrete sustainability action plans on pain of difficulty in raising capital in international markets.

On the positive side, mutual funds can also set goals among the Sustainable Development Goals (SDGs) and promote their achievement by following the guidelines of the action plan approved by the 193 countries that are part of the UN.

Sustainable investors use different management strategies:
The Normative Approach: monitoring compliance with key international treaties and regulations is the basis for 'action to improve the behavior of individual countries and multinational corporations (conventions on the Environment and Climate, labor (ILO), human and children's rights, transparency and governance (PRI, Global Compact, convention on corruption, Freedom House).
Engagement: the high road to behavior change is to require through direct dialogue countries and companies to comply with the most relevant international treaties. Even better if through coordinated action by specialized Foundations and Observatories.
Best practices: Some funds conduct ESG performance assessments of the countries in which they intend to invest or are members of organized associations that strive for greater transparency in investments (GIIN, ILG, GRI).

We use more than 70 criteria to evaluate the action of funds with regard to good governance :
Assessments are mainly divided into Impact and ESG risk assessment strategies, with the most common strategy being alignment with international treaties and stakeholder engagement to ensure sustainability of funded projects.

Adherence to and active participation in UN programs such as the Global Compact, PRI and PRB are particularly significant elements, as is the verification of all-round compliance with major international agreements in the fund investment process.

Numerous good governance principals are required of funds that claim to promote or invest in sustainability. However, this is a recommendation and not a true assessment requirement.

The areas to be checked are as follows:

• Lack of anti-corruption and anti-bribery policies.:
  Share of investment in entities without anti-corruption policies consistent with the UN Convention against Corruption.
• Cases of insufficient actions taken to address violations of anti-corruption and anti-bribery regulations:
  Share of investments in Society investees with identified insufficiencies in actions taken to address violations of anti-corruption and anti-bribery procedures and standards.
• Number of convictions and amount of fines for violation of anti-corruption and anti-bribery laws:
  Number of convictions and amount of fines for violations of anti-corruption and anti-bribery laws by Society investees.
• Lack of due diligence.:
  Share of investments in entities without a due diligence process to identify, prevent, mitigate and address adverse human rights impacts.
• Lack of human rights policy.:
  Share of investment in entities without a human rights policy.
• Number of identified cases of serious human rights problems and incidents:
  Number of cases of serious human rights problems and incidents related to Society participated based on a weighted average.

In summary, a sustainable fund must make sure that the companies where it invests are engaged in a fair business process with a risk control system, in the form of company policies, that is sufficiently extensive to prevent inappropriate behavior by the company, its suppliers, and its distributors.