The Core of our Investment Philosophy: Sustainability
Economic activity is inextricably linked to its environmental and social context, and its success therefore relies heavily on the contribution it makes to long-term sustainable growth. This should allow society to “meet the needs of the present without compromising the ability of future generations to meet their own needs”. This mission statement was first tabled in 1987 by the U.N. World Commission on Environment and Development chaired by the former Norwegian Prime Minister, Gro Harlem Brundtland.
Sarasin Portfolio Management takes into account the interplay between these three aspects of sustainable development and uses them to good effect, because:
- Sustainability helps to reduce risks - Sustainable companies are as a rule more sensitive with regard to specific risks and therefore tend to act in a farsighted manner. A food manufacturer, for example, minimises the risk to his reputation by not uncritically favouring the cheapest suppliers, which in the worst-case scenario could potentially expose him to a food scandal. Fair conduct towards employees, customers and other social partners pays off – certainly when the economy is doing well, but even more so when it is struggling. Companies that have the foresight to avoid environmental impacts and use dwindling natural resources efficiently ultimately enjoy a clear competitive advantage.
- Sustainability offers opportunities - In order to secure the foundations for commercial success over the long run, far-sighted solutions need to be found. Examples of such entrepreneurial challenges include how to meet the energy and water needs of private consumers and of industry. Companies that develop the products needed for this can break into new, attractive markets.
- Sustainability pays off - Numerous scientific studies have shown that sustainable investment is not a charitable action, nor does it automatically entail a compromise on investment performance. In fact, many studies have identified a statistically significant positive effect.
You make use of the expertise we have built up over the last 20 years as pioneers and current market leaders in sustainable investments and you can draw on the know-how of our specialists.
Do you want to know more about our sustainability strategy? Find here further details.
