For a long time, the ESG sceptics could not really be heard in all the noise around the megatrend that sustainability has become in recent years across all sectors. There is hardly a corporate strategy in sight that does not bring up sustainability, hardly a lifestyle product that does not come with a planted tree pledge when you are buying it.
On the occasion of the climate conference in Glasgow, Erste Asset Management and the environmental protection organization WWF Austria draw attention to the urgency of quick decisions and huge climate protection investments.
Funds marketing themselves as green investment do not always focus on companies that fight climate change, develop solar modules or recycle batteries. Instead, many of them look like traditional portfolios holding large tech companies – yet they wear green labels.
Green bonds are securities that are allocated to specific energy and environmental projects and are intended to contribute to a climate-friendly transformation of the economy. According to a study by the Climate Bonds Initiative (CBI), they reached a record level of $269. 5 billion in 2020. Sustainability-Linked Bonds represent a voluntary commitment for issuers. How exactly they work is explained in our analysis.
ESG bonds are currently on the rise and are becoming an increasingly important part of corporate bonds. According to BofA Securities, 13. 5% of all new issues with ESG criteria were already issued globally in the first half of 2021. This trend is well established in Europe and is also increasing in the USA, as the following analysis shows.
We are pulling the plug on coal, abstaining from investments in companies that operate in the fields of coal mining or the production of electricity or fuel from coal from 1 July 2021 onwards.
Today the EU Disclosure Regulation comes into force. This is intended to create transparency with regard to the inclusion of sustainability risks in financial investment products. What does the regulation include and what do we do as a fund company?
The coronavirus pandemic is currently a challenge to the entire world, but the climate crisis has not lost any of its urgency either.
The entire Bitcoin network already requires more energy than Peru or Hong Kong, or almost half of Austria’s power supply. Such a development is clearly at odds with achieving the goals of the Paris Climate Agreement, i.e. to curb global warming to below 2 degrees.
SO2, CO2 and H2O tell a story about threats to the environment. At the same time, these three chemical compounds stand for the possibilities of sustainable investment. Why Gerold Permoser, Chief Sustainable Investment Officer of Erste Asset Management, is hoping for H2O to become the next SO2 .