Is the wave of sustainable business over?
Not too long ago, there was no way around the topic of “sustainability.” The belief that the economy—and, by extension, investment decisions—should necessarily take sustainability criteria into account was on everyone’s lips. With the political shift of recent years, this seems to have become irrelevant—or has it?
Yes, the days are over when the financial industry competed by launching new products around “sustainable investing.” For investors, the question of how to shape their own wealth management remains thematically relevant. We recommend aligning decisions with your own values. Even those who do not apply sustainability criteria in wealth management are not fundamentally opposed to sustainability; rather, they trust in market mechanisms.
In principle, five different approaches to sustainability in wealth management can be distinguished. Each has its own justification. There is no single best or “correct” methodology to appropriately account for sustainability in one’s wealth management. This makes it all the more important that the chosen approach aligns with your own understanding. Which one suits you?
No Sustainability Filters
No specific filter is applied in wealth management, as any necessary considerations are already addressed by the efficient market.
Negative & Positive Screening
Investment guidelines explicitly exclude or include certain areas. Typical examples of excluded investments are companies involved in the production of alcohol, tobacco, weapons, fossil fuels, or nuclear energy.
Best-in-Class
Individual investments are compared within a peer group, and those that rank highest according to ESG criteria are selected.
ESG-Integration
In this approach, ESG criteria are fully integrated into the management strategy rather than treated as a separate process.
Active Ownership
In this method, investments are not only managed within the portfolio, but the manager also actively exercises voting rights in accordance with sustainability principles
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