Sustainable investment, winner of the crisis? Investments that meet environmental, social and governance (ESG) criteria have long been seen as an instrument designed to raise awareness, before becoming a risk management tool. They are now almost an essential product for the investor. Seen simply as a “sustainable investment”, they are increasingly considered as a “creation of sustainable value”, underlines Thomas Trsan, specialist in ESG andimpact investing at Vontobel.
So far, their performance has not been worse, but their volatility has been lower. Now they stand out with the returns too. “The ESG indices for international equities, which must offer the same performance in terms of risk and return as the traditional indices, have done the same thing, even beat them. This is good news because it was their first full-scale test, “said Jean Niklas, head of equity investments at the Vaud Cantonal Bank. Interest in this type of investment will continue: “It is no longer a fad, it is a heavy trend that will continue,” he said.
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