What is an ESG or sustainable development investment?


All investments, whether in the equity or debt of companies or in infrastructure projects, are considered sustainable when they seek, in addition to positive economic results, a long-term impact on: society, the environmentand economic growth.

Investments

Incorporation of ESG responsibility criteria in ESG investment management.


Investors and companies are increasingly aware of the importance of environmental, social and corporate governance (ESG) factors. Which may be related to long-term performance and risk. By broadening access to data, insights and information on ESG risks and opportunities relevant to investments, we can become better ESG investors across the board.




ESG is a set of "non-accounting" data needed to measure, identify and report operations.


Company valuation has become more complex, with an increasing share linked to intangible assets. ESG metrics provide information on these intangibles, such as brand value and reputation, measuring decisions made by company management that affect operational efficiency and future strategic directions.



Environmental (E)

It covers topics such as climate risks, natural resource scarcity, pollution and waste, and environmental opportunities.

It includes activities such as:

  • Climate change and carbon emissions.
  • Waste Management.
  • Energy Efficiency.
  • Water and Air quality.
  • Renewable Energy Use
  • Deforestation

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Social (S)

It includes labor and product liability issues, risks such as data security and stakeholder opposition.

It includes activities such as:

  • Working conditions
  • Customer satisfaction
  • Human rights
  • Data protection
  • Product impact
  • Gender and diversity
  • Employee engagement
  • Community relations

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Governance

It covers elements related to corporate governance and behavior, gender equity, as well as the quality and effectiveness of boards of directors.

It includes activities such as:

  • Anti-corruption
  • Transparency of information
  • Composition of the Board of Directors
  • Bribery and corruption
  • Whistle-blowing systems

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Sustainable Development


The ESG considerations that are important will vary by investment style, sector/industry, market trends and client objectives.


ESG integration is about using research, data and knowledge to inform investment decisions.


Sustainability issues can contribute to a company's long-term financial performance, so incorporating these considerations into investment research, portfolio construction, portfolio review and management processes can help improve long-term risk-adjusted returns.

Benefits of ESG investments

Increased acceptance

Financial decision-makers are demanding more from companies and are looking for more sustainable investment solutions.


Aceptacion
risk

Lower Risk

It is proven that ESG research and analysis can potentially identify investment risks and generate higher returns.


    Do you want to know our pipeline of sustainable investment projects?

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    Dedicated and integrated sustainable investment.

    We clearly distinguish between products dedicated to sustainable investment and the process of integrating sustainability-related policies and use of sustainability-related data or knowledge into the policy of existing investment processes or investee companies and projects.
     

    Sustainable solutions.

    Based on their purpose, business model or policies, we classify each investment or opportunity as either "Avoid" or "Advance".

    There is a wide range of products available to investors seeking specific sustainable investment solutions. At OBC Partners. Avoid" strategies involve the elimination of certain companies or sectors that are associated with higher ESG risk or that violate ESG values. "Going forward" strategies focus on increasing exposure to positive ESG characteristics to align capital with certain behaviors or target specific positive social or environmental outcomes.

    Sustainable investment funds
    Environmental
     
    Quebrada

    ESG integration.

    ESG integration in investments means incorporating ESG information into investment and management decisions.

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    This is to help improve yields and reduce risk. Regardless of whether an investment strategy has a sustainable mandate or not. At OBC Partners we believe it is about making research, data and knowledge available to all our managers, and working with them to identify potential process improvements across all investment activities. ESG integration Translation made with the free version of the translator www.DeepL.com/Translator
    Asset Management

    Impact investment

    Impact Funds aim to contribute to measurable positive environmental, social or United Nations Sustainable Development Goals ("SDGs") outcomes, along with financial returns.

    The OBC Global Impact Fund seeks to maximize long-term total return by actively investing in companies whose core business areas are helping to address the SDGs through their products and services, seeking to outperform their benchmarks.

    Impact Investment
     

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