ESG investing Reasons to invest
Sustainable investments focus on generating long-term, risk-adjusted financial returns while having a positive ecological, social and ethical impact.
This being said, the present moment is auspicious for ESG investing:
- A young generation of investors harbors a stronger-than-ever commitment to sustainability.
- New methodologies and analytics are allowing for even greater precision in implementation and portfolio construction.
- Studies (see chart) show that ESG-compatible investments achieve similar performance scores as comparable traditional portfolios.
Historical performance indications and financial market scenarios are no reliable indicators of future performance.
- The final return depends on the selected investment strategy
- Sustainable investment strategies face the risk of higher tracking errors, differences in performance and investment strategy risk, particularly if the strategies are managed versus traditional benchmarks (non ESG compliant benchmarks)
- For risks of individual investment instruments, please refer to your relationship manager