Sustainable financing has established in the mainstream of the capital markets faster than expected. What impact does this have on the corporate landscape? And what does it mean for my own investment?
Sustainable investments are trending
The importance of sustainability is also increasing on the stock exchange. More and more people are focusing on ecological, ethical and social criteria in their private investments. Companies that promote diversity or renewable energies, for example, or are committed to combating child labour or corruption are benefiting from this. "The boom in sustainable investments is continuing, both among private investors and institutional investors," says Robert Kelm, ISM alumnus and Head of Frankfurt Branch at Private Banking of HSBC Germany. "Sustainable finance is one of the major topics for the future and for growth. In particular, the shift to a low-carbon economy is causing the biggest wave of investment the world will see in the coming decades."
Impact of ESG on the economy
With the increasing demand, the pressure on companies is also growing considerably. This means that the question for companies is no longer whether they should act ecologically, ethically and socially, but how, in order to be sustainable. "The challenge is particularly for high-carbon clients," say Robert Kelm and Dr. Tobias Müller, ESG Ambassador in Private Banking at HSBC. "Some of these companies have to invest billions to change complete production processes and adapt the product portfolio. As a bank, we support companies in this transformation process. We also assume that in the not too long term, companies that pursue a sustainable strategy will be able to get money more easily than companies that do not take the path of transformation."
Finding the right sustainable investment
Despite increasing transparency in the market for sustainable investments, there is still no common definition of sustainability. That makes the topic even more complex, not only for companies but also for private investors. "The magic triangle - What return are you aiming for? What risk are you willing to take? For what period do you want to invest your assets? - is supplemented by another question: Which sustainability criteria would you like to see fulfilled? This makes the investment decision more exciting, but not easier," says Robert Kelm. Which sustainable investment is the right one for you personally thus also depends on which values you represent and how you want to strengthen them in the economy.
You want to learn more about sustainable investments and create your own green investment?
On 29 September 2021, Robert Kelm, ISM alumnus and Head of Frankfurt Branch in Private Banking at HSBC Germany, together with Dr Tobias Müller, ESG Ambassador in Private Banking at HSBC, will provide answers to the most important questions and explain how your own sustainable investment can work.
For more information and to register for the online event, click here.