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.
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.
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
Financial decision-makers are demanding more from companies and are looking for more sustainable investment solutions.
It is proven that ESG research and analysis can potentially identify investment risks and generate higher returns.
Dedicated and integrated sustainable investment.
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.
ESG integration in investments means incorporating ESG information into investment and management decisions.
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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.