What is sustainable investment?
Sustainable investment is a recent concept aimed at improving environmental conditions by investing in resources that are not solely linked to financial criteria.
This concerns issues such as global warming, the use of renewable energies, water conservation, biodiversity preservation, waste reduction,ect.
Why invest sustainably?
Sustainable investment is an effective way of participating in sustainable development, with the aim of improving both current and future environmental conditions.
These investments reflect important values while helping to improve risk/return profiles.
The latest trends
– ESG (Environmental, Social and Governance) criteria: more and more banks want to or have already integrated these criteria into their financial products. Over the years, customer portfolios have evolved, and new generations want to invest in ways that have a positive impact.
– Impact Investing: as its name suggests, Impact Investing aims to generate more social and environmental action, over and above financial returns, on specific issues.
– Green financing and sustainable bonds: financial products linked to the energy transition, such as green bonds and sustainable bonds, continue to grow. These bonds can be used to finance eco-responsible projects (renewable energies, sustainable transport, etc.).
Green bonds are loans issued to finance “green”, i.e. environmental, projects.
Sustainable bonds are more general and can be used to finance both environmental and social projects.
– Transition to “Net Zero”: “Net Zero” is a way of contributing to global carbon neutrality by 2050. Energy transition strategies focus on sectors such as renewable energy, energy efficiency and the circular economy.
– Technology and Fintechs: thanks to the latest innovations, particularly in specialized institutions, it is now possible to track developments in environmental and social impacts live via interactive dashboards.
The latest trends are based on increasingly personalized solutions, in line with customer values. It is important to act transparently, which is why banks issue detailed performance reports.
These trends point to the increasing integration of sustainable considerations into wealth management, and to growing customer demand for solutions that combine financial performance with positive impact.
