SRI in Europe : Reasons of Success

What are the key factors which have a positive impact on this industry? Who are the actors? How does this sector evolve? What are the initiatives or regulations with strong impact? What type of offer must be developed?

To answer and to discuss these questions we attended the  Sustainable Finance Geneva Conference  and Eurosif presentation.  We are happy to report and to invite you to share them.

3rd EUROSIF Study on High Net Worth Individuals and Sustainable Investment Shows that sustainable investments by European HNWIs has increased by nearly 60% over the past two years, compared to an 18% increase in overall European HNWI wealth over the same period. Sustainable investments rose to €1.15 trillion compared to €729 billion in 2009, reflecting persistent demand even in volatile markets.

The survey also covers impact investingfor the first time. It shows that impact investing is common among HNWIs, with 1 out of 2 respondents allocating assets to this type of investment. While the most frequently mentioned motivation for impact investing by HNWIs is ‘contribution to sustainable development’, it is interesting to note that just behind this, ‘alternative to philanthropy’ is mentioned as the second most important motivation. Impact investing is actually more often seen as an alternative to philanthropy than other sustainable investment strategies, which 51% of respondents now consider as financial discipline.
Eurosif HNWI and SRI

 

European SRI Study 2012

 

 

Commenting on the results, Eurosif Executive Director François Passant states: “The value proposition of sustainable investment and impact investing, combining both financial interests with sustainability concerns, make these strategies a valuable fit with any HNWI investment portfolio. The fact that many HNWIs who have tested sustainable investments are shifting more assets into these strategies reflects that. This should be no surprise, even in terms of great market uncertainty, as the effects of these strategies are magnified over time and align well with the long term perspective and wealth preservation objectives of HNWIs”

Sustainability Research as Added Value for Investors (SAM approach showing the real positive impact in assessing ESG principles)

Slide Nr 6 shows the huge potential for investors in this discipline