Impact investing is one of the fastest-growing investment approaches to make our economies more sustainable. It offers opportunities that are not only socially and environmentally beneficial but that can also be financially rewarding.
In a world looking to emerge from the most devastating pandemic in a century, the case for building a better, more sustainable and resilient ‘normal’ is clearer than ever.
According to the World Economic Forum, actively tackling the global nature crisis could create 395 million jobs and USD 10 trillion in business value each year by 2030. It is perhaps not surprising, then, that many investors are interested in having a positive impact on the environment and society through their investments.
A comprehensive ecosystem
Julius Baer is committed to driving a comprehensive sustainability strategy and recognises the role that the finance industry needs to play in transitioning to a more sustainable world, by empowering clients, employees and other stakeholders to achieve a stronger positive impact.
In pursuing this goal, Julius Baer focuses on two of the most critical global challenges in transitioning towards a sustainable economy – addressing the overuse of natural resources, and addressing the underuse of human resources.
“To accompany clients on their sustainability journey, the bank has developed a comprehensive ecosystem that goes beyond financial products and incorporates transparent reporting, as well as access to thought leadership and networking opportunities for clients,” highlights Albert Henriques, CEO at Bank Julius Baer Monaco.
Impact investing as a key pillar of responsible wealth management
Within responsible wealth management, which for Julius Baer encompasses responsible investing, sustainable investing, impact investing and philanthropy services, the fastest-growing approach is impact investing. Impact investing goes beyond considering ESG factors: it catalyses environmental and social change whilst securing financial returns. This can be achieved by actively engaging with underlying investments to improve their ESG performance or by providing finance to companies with a clear environmental and social mission that would not otherwise have access to it.
Impact investing offers a broad array of possibilities, which are not only socially or environmentally beneficial but can also be financially rewarding. Not all impact investments imply concessionary returns but instead can match those of traditional investments.
The number and scope of impact investments available is steadily increasing. Options that have recently become available include funds that seek to drive forward solutions for financial inclusion and improving ocean health. Other impact investments can be in areas as diverse as public health, sustainable food and agriculture, or novel climate technologies.
“It’s important that clients interested in impact investing have access to a broad range of services and information,” says Albert Henriques. “So at Julius Baer, we offer not only products, but also in-house expertise, peer networking and portfolio impact measurement. We do this across various levels of service, depending on needs and preferences. As with responsible wealth management more broadly, we take a thematic approach, empowering clients to leverage their investments to address critical challenges in transitioning towards a sustainable global economy.”
