13 November 2017 | Internet

The last tendency: to invest to change the world

The data show the importance of this new tendency: The Socially Responsible investment has grown an annual 26% from 2010

The economizers more and more are worried about the social and environmental impact about the companies in which they invest. No longer he is enough with obtaining yield, this must be obtained according to his values. Some, go a step further on and look for investments that directly generate a positive impact.
The data show the importance of this new tendency: The Socially Responsible investment has grown an annual 26% from 2010 and according to the McKinsey consultant, two survey thirds of the Millenials are in agreement with the affirmation €œMy decisions of investment are a way to express my social, political or environmental values€.
In order to give service to this increasing demand, many managers are sending specialized vehicles. The main house and investment banks of analysis also have constituted expert equipment in sustainability that publishes periodic reports.

Examples of information published recently by companies and investment banks of analysis

Toxic spills, CO2 emissions, labor operation and sexual discrimination are only some aspects to which the investing community is paying more and more attention responding to a society more and more brought back to consciousness.
Most of these bottoms measure their impact with respect to the objectives of sustainable development of the United Nations: €œto eradicate the poverty, to protect the planet and to assure the prosperity for all in next the 15 years€.

Objectives of sustainable development of the United Nations.

Esteem that, to achieve these objectives, only in the countries in routes development, $1,4 trillions make lack of dollars per year.
The impact investment questions that it is possible to only solve the most important problems of the humanity by means of governmental policies and philanthropy.

Types of investment

Diverse ways exist to confront the socially responsible investment and each style has its own shades. A classification based on the level can be done of impact:

  • Responsible investment: It excludes the sectors in conflict with some certain values (highly polluting Armament, tobacco, game, industries€¦).
  • Socially Responsible Sustainable investment: Independent of the sector in that they operate the companies, it looks for leaders in ESG €“ By his abbreviations in English: Enviromental (Environment), Social and Governance (Corporative Government). An example would be an industrial company with significantly smaller CO2 emissions than its competitors and with an efficient management of residues.
  • Thematic investment of impact: One is companies whose operations contribute directly to social or environmental aims. Within the quoted ones they emphasize as examples Suez Environnement (implements solutions in management of water and residues) and Bharat (it offers financial services to underprivileged population in India).

Other types of approach exist who respond some certain values, for example, those of religious principles (an ETF called €œS&P Catholic VALUEs€, bottoms that invest according to the law Sharia etc.) and other that take care of the well-being of the animal.

Green bonds

Another assets of increasing importance €œgreen bonds€ are the calls. They have as aim the financing of projects that produce benefits in front of the climate change.
To fund to the Municipality of Lima to install an electrical street car in the city or to Microsoft to construct a Aeolian macro-park that generates the necessary energy for its business in the cloud in Europe they are some examples.
The majority of green bonds is bound to renewable energy, green constructions, clean transport and sustainable management of the water.
The emission of these bonds duplicated its volume in 2016 and it hopes that it returns it to do in 2017 reaching more than 160 billions of dollars in the year.
Analyzing the green bonds that there are at the moment in the market, it is possible to be observed that they present yields similar to traditional bonds reason why they suppose for the investors assets specifically dedicated to projects with environmental impact that offers an attractive yield at the same time.

And what happens with the yield?

The responsible investment does not have why to imply lower yields. In fact, in the last 10 years, the Global index Dow Jones Sustainability World has raised +13% more than MSCI World.
It seems logical to think that companies brought back to consciousness with the future, diverse, efficient groups in the use of resources, etc., present better stock-exchange behavior in the long term.
In some cases, to exclude certain sectors, can affect negatively to the yield. For example, from 1994, the companies of the sector of the tobacco have raised an annual 9% more than those of the MSCI World index. In any case, many investors have not had problem in resigning to this greater yield knowing than their savings are aligned with their values and they do not contribute to expand tobacco addiction by the world.

Difficulties

To evaluate what investments are apt for this type of bottoms is not simple. Historically many companies have spent symbolic amounts in social causes and campaigns of public relations. Today the aspirations must be much majors.

There are several cases that draw attention and demonstrate the difficulty of the matter. For example, that producing tobacco companies are including in index STOXX ESG Leaders. Also that RobecoSam (specialistic signature in sustainable investment), in 2015 shortly before the scandal of the emissions, would consider to Volkswagen as the more sustainable automotive group of the world.
For this reason, he is essential to deepen in the analysis when evaluating the social and environmental impact of secondary the main activities and of the corporations.

In the good way

He is unquestionable that Capitalism and the globalisation have obtained a remarkable improvement in the well-being of the humanity. Only in the last 20 years, more than 1,000 million people have left the extreme poverty.
Shelp this, also he is unquestionable that numerous human groups have been themselves excluded and others directly have been harmed by this economic system. The planet earth is one of the victims and, in many aspects, the present tendencies of consumption are not sustainable from the environmental point of view.

The socially responsible investment offers a solution to the increasing number of investors who look for a responsible Capitalism

We even were in the starting phase. It is fundamental that the different implied parts continue collaborating to generate investment opportunities that offer a measurable positive impact.
The companies also will have to be more transparent: they will have to quantify and to detach indicators that reflect the social and environmental impact of their operations. As much the positive impact as the negative.
We are in a while historical in that our generation, thanks to the technological advances, must in its hand solve the main problems which the humanity faces. For it, he is essential that the projects and implied companies have access to the financing which they offer the capital markets and is indeed in this space where the impact investment plays its vital role.

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