Spanish managers are more likely than international ones to leave controversial sectors out of their sustainable funds. At least, that follows from the Spainsif Annual Study 2024which analyzes the progress of investment based on environmental, social and corporate governance (ESG) criteria in this country and which was presented this Tuesday in Madrid. The most common exclusions in responsible investment funds have to do with the so-called controversial weaponssuch as cluster bombs (which release a multitude of small bombs when opened and are prohibited in more than 100 countries), or anti-personnel mines (which are camouflaged in the ground and are activated when stepped on, and which have also been banned by more than 100 states). More than 80% of managers, both Spanish and international, agree on leaving them out of their portfolios. However, when it comes to weapons generally, there is not much agreement: 56% of Spanish managers exclude them from their sustainable funds, compared to 20% of international firms. Visit the specialized portal elEconomista ESG.
This strategy based on exclusions is one of the most used by sustainable investment funds. It consists of leaving out companies or countries based on their exposure to high-impact -negative- sectors, or because they fail to comply with international Human Rights standards. Apart from the aforementioned controversial weapons, the most present exclusions in ESG investment funds have to do with the violation of human rights, fossil fuels and tobacco. But, in all categories, Spainsif’s analysis shows how domestic managers are more likely that the foreigners to completely leave out of your thematic portfolios sensitive. For example, 67% of Spanish firms exclude tobacco, compared to 40% of international firms; in the case of the game, it is 43% compared to approximately 25%).
To obtain this data, Spainsif carried out surveys of 27 national asset managers and owners and another 15 international ones, which together represent 84% of the assets of Spanish entities. The study, which has been prepared with the support of DWS, also reveals the volume of assets managed by national entities with ESG criteria in Spain, which amounts to 236,894 million euros. This figure is not comparable with that of previous years because Spainsif has changed its methodology, and now distinguishes between four categories: ESG, advanced ESG, Investing Aligned with Impact and Impact Generating Investment. Spainsif is a non-profit association that is integrated into Eurosif, an association that brings together the different national sustainable investment forums (SIFs) in Europe.
Precisely because of this own methodology, Spainsif’s data differ from those recently disclosed by Inverco, the management association, according to which practically 36% of the assets in Spanish funds are sustainable, that is, they are classified as article 8 or like article 9, which are the two categories of sustainable investment vehicles contemplated by the European Commission’s Sustainable Finance Disclosure Regulation. As of September 2024, the assets of sustainable funds reached 138,838 million euros, according to the employers’ association.
The report also shows that the active dialogue initiatives with investee companies and voting at the shareholders meeting (that is, positioning themselves against proposals that do not follow ESG criteria) have already consolidated their role as one of the most widespread practices in Spanish sustainable investment: 88% of national managers use them.
During the event, the new Spainsif Strategic Plan 2025-2027 was presented, which will guide the organization in the coming years in 5 axes: strengthening advanced sustainable investment strategies oriented to impact, promoting financial education in sustainability and support for the individual investor, collaboration with the regulatory and supervisory environment for sustainable investment and finance, the analysis of outstanding sustainability issues for investment and the promotion of practices, instruments and sources of sustainable financing.
In the words of the President of the association, Joaquin Garralda“The new Strategic Plan 2025-2027 represents an ambitious commitment by Spainsif to lead the advancement of sustainable finance in Spain. It establishes a clear framework to strengthen strategies with greater capacity to transform the real economy from financing and investment, both for institutional investors and for the general public and small and medium-sized companies. Spainsif’s commitment to innovation and financial education, with a special focus on SMEs and Spanish-speaking collaboration, reinforces our purpose of promoting changes in processes. of investment and financing to contribute to sustainable development.”
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