Sustainble investing pays off
There is wide consensus nowaydays that sustainable investing does not cost you any return. So why would not you do so? After all, you contribute to a more social, greener and honest society. A 2014 meta-study at Oxford University summarized 200 papers that all examined the link between sustainable investment and return. A large majority found a positive relationship. A similar study by Deutsche Bank in 2015 on more than 2000 papers reconfirmed that statement.
Applying the correct rules
It is important that the relevant sustainability issues are charged per company and sector. CO2 is less relevant in the technology sector than in logistics, for example. Just as employee safety on oil drilling platforms is a bigger issue than in the banking sector. Sustainability does not only include good working conditions or the right way to deal with the environment, but also corporate governance. The latter is paramount in emerging markets. To have a good view of this, local knowledge and presence is required. That is why we have our own research desk in Singapore.