Our investment philosophy
Why sustainable investment pays off
There are good reasons for choosing sustainable investment:
Personal values
Sustainable investment takes into consideration the investor’s personal values. To be able to enjoy what we have saved later on, it is in everyone’s interest to contribute to a type of growth that is environmentally and socially sustainable over the long term.
Economic efficiency
Apart from the personal values of the individual there are also a number of purely financial reasons why environmentally and socially responsible conduct can pay off for companies - and subsequently for the people who invest in them as well:
- Cost and income advantages: Companies that have prepared themselves for sustainable growth enjoy competitive advantages: Companies that consume fewer resources, for example, have a systematic advantage if there is a resource shortage (e.g. oil!)
- Environmental protection/environmental costs: Whilst environmental protection may cost money, the alternative – no protection – often costs even more (e. g. avoiding waste leads to lower waste disposal costs).
- Fewer risks: Eco-efficient businesses with a strong social management are exposed to fewer risks and avoid for example a crisis that could threaten its existence (for example, the use of double-hulled tankers not only reduces the environmental risks).
- Fairness: Fair conduct towards employees and other stakeholders pays off: contented employees are harder working and more motivated, happy suppliers are more reliable, and satisfied customers are more loyal.
Increasing demand
Companies committed to sustainability improve their sales chances: demand for products produced in an environmentally and socially responsible way is growing both on the corporate side and the consumer side.
Good performance and limited risk
A widely acclaimed basic report published by Bank Sarasin shows that these considerations are not purely theoretical, but that sustainable investment really is a type of investment that can perform well in return for a limited risk.
Other institutions and experts have been studying this economic relationship for many years. For an overview of the insights obtained to date, please click here.
