Private banking is increasingly sought after for responsible and sustainable investments. These investments seek to have a positive social and environmental impact while generating attractive returns. Investors use their assets to support projects or institutions that have a positive impact on communities and the environment.
Several types of responsible and sustainable investments are available to private bank clients, including:
- Investing in social projects:
Private banks can offer to invest in projects that have a positive social impact, such as affordable housing projects (private or semi-public), community development projects, and educational projects.
- Investing in renewable energy:
Private banks can recommend clean energy projects, such as wind turbines or solar panels, to help transition to a more environmentally friendly economy.
- Invest in committed companies:
Private banking gives you access to buy shares in committed companies that meet environmental and social standards, such as environmentally friendly companies, ethical companies and companies with strong corporate governance practices.
For many years, the private bank has proven that even by investing in projects and companies that have a positive social and environmental impact, investors can still achieve attractive financial returns.
Responsible and sustainable investments, just like so-called “classic” investments, can present higher or lower risks. The private banker gives his clients the choice to select investments according to their risk appetite.
Beyond advising on investments in sustainable projects, private banks contribute to sustainable development themselves by using their own business practices and by investing in societal projects.