Once a niche, ESG investing is now one of the most popular and fastest growing investment themes across all verticals.
WHY ESG SUISSE?
ESG Suisse is an impact-driven investment vehicle dedicated to aligning ethical values with clear investment objectives.
We apply environmental, social and governance (ESG) principles when investing. By doing so, we target the following double bottom-line benefits:
We aim to deliver superior investment results, by
investing with the highest sustainable integrity.
According to JP Morgan, the ESG investing industry is set to encapsulate $45T in total assets by 2021.
We believe in positive screening and active management and not passive exchange-traded funds (ETF's), that take no interest in the companies they invest in, but blindly track some indexes and exclude some themes.
Our approach is different.
We cherry-pick and invest in companies and entrepreneurs, that are building the kind of world we want to be living in tomorrow.
WHAT DRIVES THE MARKET FOR ESG?
The millennial generation and their rising spending power is a key driver of the ESG market. Millennials master social media, they are curious and they question everything, that does not have a positive sustainable impact.
Millennials know what they want, they are better connected and they have access to information. They are willing to pay more for sustainable products and make positive recommendations of these products to their followers. They are not willing to promote or being employed by companies, that are not acting good, kind and responsible, i.e. have low stakeholder value.
"The new normal" with a global pandemic is also a major turning point for active ESG investing. Key players are viewing the health crisis as a wake-up call for sustainable behaviour:
Regulators are demanding more depth and transparency from corporate entities in relation to their ESG compliance, increasing the public disclosure of alternative data sets.
Analysts are developing new tools to obtain, track and verify alternative data sets. The use of AI is accelerating the identification of ESG compliant entities to be included in portfolios.
Investors are requesting sustainable investments to be included in their portfolios, driving the overall demand of new ESG compliant investment vehicles to be developed.
Fact is, that exposure to ESG-related risks materially affects not only the shareholder value, but also the stakeholder value. High-profile examples of such ESG-related incidents include:
(2001): The Enron accounting fraud (and the following collapse of Arthur Andersen)
(2010): The Deepwater Horizon oil spill
(2015): The Volkswagen emissions test cheating
(2018): The Facebook data privacy scandal
(2021): Shell loses climate case that may set precedent for big oil
Sustainable investing is adding value on top of the traditional equation. Not only is it targeting positive environmental, social and governance outcomes (without sacrificing potential return). It is also an effective tool to avoid companies that might pose financial risk due to incompliance with ESG practices (reputational damage).
As example, hydrogen is gaining interest of many investors amongst the renewables energy space, considered promising for both clean production and storage. Global hydrogen market is expected to reach $196 billion by 2030 from $136 billion in 2020, at a more than 5% annual growth over the period. Sectors of interest for applications are many, with transportation notoriously in the spotlight.
That's the opportunity, we are investing in.
Our investment process is based on two pillars: A “top-down” market-based assessment of a company’s potential, and a “bottom-up” analysis of its capacity to deliver growth.
Potential target investments undergo a multi-step due diligence and screening process. All steps are safeguarded by our Research and Investment Committees.
We have "skin in the game" and invest together with our partners.