When I started writing this article related to sustainability, the first thing that comes to mind is the consequences that DANA has caused in different territories of Spain. I take this opportunity to express my condolences to all those affected. Different experts have already shown that, although this phenomenon has already happened in the past, It is possible that this type of meteorological event will become more frequent due to the impact of climate change in the world. That is to say, the importance of the environmental aspect in our daily lives is being put on the table. Visit elEconomista ESG, the green portal of elEconomista.
In this regard, as I have already commented on other occasions, I consider that the implementation of financial products that promote or take into consideration aspects related to the environment, social and/or good governance, is being carried out in a solid and progressive manner. But the most relevant thing in my opinion is to ask ourselves If we can do something through our savings to reduce the frequency of these types of events.
Analyzing the latest Inverco study in which it publishes the latest data related to sustainable collective investment institutions (article 8 or 9 under the SFDR regulations) it is observed that they represent 24.32% of the total investment funds, a figure that improvement compared to previous publications. Also noteworthy is the fact that the assets managed in this type of instruments reached historical highs with a share of 35.8%, at the end of September 2024, from the 9.8% observed in March 2021 (entry date in force of the SFDR regulations). By categories, Fixed income is the asset that concentrates the greatest assets managed with ESG criteria.
Therefore, analyzing the evolution of this data, it becomes clear that investment funds with sustainable characteristics are having good acceptance in the market by investors. From my point of view, the progress indicated in the previous paragraph comes from the convergence of several situations: 1) fund managers increasingly have a greater interest in marketing investment funds with sustainable characteristics due to greater awareness of these factors, 2 ) Retail customers after the incorporation of the new suitability test may show sustainability preferences and in this way the financial advisor can and should offer instruments to fulfill this request, and 3) finally, financial institutions are showing greater interest in training their employees in degrees focused on sustainable investment. ‘Green’ investment funds are gaining share in Spain: they already account for 36% of assets.
Therefore, in answer to the initial question, I consider that yes, we can help through our investment that companies integrate environmental, social and good governance aspects into their business decisions; since if they do not take it into consideration, they will not meet the demands and requirements to be part of the eligible universe of investable assets.
Alfredo Nieto Garcés is a Private Banking Investment Manager at Ibercaja Banco.
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