“Conscious Investing” is our take on sustainable finance. Our CEO Alberto Rama explains “why we care”.

My team at Investment Navigator started last year with the design of a new ESG suitability service in anticipation of a wave of upcoming sustainable finance regulations. We created a solution for our clients which systematically integrates ESG considerations into their investment and advisory processes. It was the summer of 2019 when the urgency of climate action finally broke through into mainstream society. Led by an engaged generation, impassioned people across the world took to the streets to demand immediate action from politicians and economic leaders.

A different world

One year later, the world looks vastly different. 2020 will go into the history books for devastating bushfires and rainforest blazes, a global pandemic with international lockdowns and hundred thousand of deaths. It will be remembered for unrest over social injustice as well as for the rising political tensions between powerful nations. Suddenly, the connection between green crimes, public health and safety has become undeniable and impactfully changed our daily lives.

In many countries, the public demand for change has led to initiatives and reform plans for greener and more sustainable societies. At the forefront is the European Union, with a flagship sustainable transformational agenda for its single market economy. Which, after several years in the making, is now entering the critical introduction phase. The EU Action Plan on Sustainable Finance will enforce tangible systemic changes to the EU financial eco-system. It ensures that the financial sector is part of the transformation of the EU economy to deliver on climate, environmental and social sustainability goals.

A matter of transparency

Banks and wealth managers alike will need to comply with a myriad of new regulations like the ESG-driven MiFID amendment. It is one example how financial market authorities around the world are raising and aligning the sustainability standards in the financial industry. ESG regulations have become a must-comply factor and are equally important in the distribution of investment products as the adherence to cross-border rules, sales authorizations, prospectus restrictions or tax implications. Many of our clients have set themselves ambitious targets, going even beyond the mere compliance. We are determined to support them on this journey. Regulation and technology are a force for good in achieving the positive transformation of our economies. Especially services such as Investment Navigator are enablers of policy change.

Conscious investing with the transparency about the environmental and social performance allows investors to recognize the impact of their assets and to be held accountable for their investment decisions.

A robust framework

Over the next weeks, we will provide you different perspectives, insights, opinions, and actionable information from internal and external specialists about sustainable finance and ESG regulations. What is very important to me, is the message that ESG does not mean green investing. It is a framework of performance and risk management applicable to all kind of investments.

Naturally, we care about Sustainable Finance because it is critical for our clients driven by regulatory changes – the raison d’etre of our company. Beyond our company mission, we are aware that everything from economic prosperity to public health and peace is connected. That is the reason why we care deeply about Sustainable Finance – as we see it as an essential contribution of creating a liveable future.

If you would like to stand side-by-side with us on our journey, start a conversation and let us know your thoughts.

Sincerely yours,
Alberto

Written by Alberto Rama. First published on LinkedIn on 14 October 2020.