Sustainable investing: defined with the acronym ESG (Environmental, Social, Governance), responsible investments pursue the typical objectives of financial management, taking into consideration environmental, social and governance aspects.
What does it mean sustainable investing?
Investing in a sustainable way means investing in progress, in the awareness that the companies that contribute to solving the main problems of the planet could be the best positioned to grow. Focusing on ESG investments means identifying new ways of doing business and giving impetus to encourage more and more people to choose the future that we are working to create.
The growth of ESG investments is also favored by the push of Millennials, the growth in demand is unstoppable and the range of products offered is increasingly varied also as regards the bond asset class.
The great majority of studies carried out by independent parties tend to demonstrate that responsible investment does not necessarily lead to yield waivers, especially when it is not achieved by applying heavy sectoral exclusions. It should be considered, however, that sustainable investing is based on medium-long term investments, which are not speculative in nature. It is therefore likely that they are able to give better returns in medium-long periods.
ESG investments for ethics and finance together
Sustainable finance therefore combines two components, the ethical and economic-financial aspects: consistency is sought between the moral convictions of the investor and the environmental and social consequences of the activity of the issuers in which to invest; and the impact on investment performance is a consequence, positive or negative, is not the goal.
Looking instead at the economic-financial part: the attention to environmental or social issues is fueled by the search for valuable drivers, the assumption is that the companies most attentive to the demand for responsibility from society are those that will have the most probability of success in the medium term; this approach applies both at the sector and individual issuer level.