Safe, Tax Efficient and Compliant Sustainable and Impact Portfolios for Italian Residents
Paul Redmond
Managing Partner
31 May 2024
Are the prospects of market rate investment returns together with positive environmental and social change more than just misplaced optimism?
The short answer is a resounding YES!
As the transition to a resilient, low carbon, sustainable economy is already underway, we would encourage you to take this opportunity to review your portfolio with us to ensure that your asset allocation is sustainable so as to provide the funds you and your family need now and in the future.
Exclude
include ESG scores or sustainability policies into risk / return profiling
positive environmental and social change with market rate returns
limit exposure to unethical or damaging industries
Impact
seek financial return without consideration of sustainable criteria or outcomes
Traditional
ESG integration
Exclude
ESG integration
Traditional
seek financial return without consideration of sustainable criteria or outcomes
limit exposure to unethical or damaging industries
include ESG scores or sustainability policies into risk / return profiling
Impact
positive environmental and social change with market rate returns
A set of 17 global goals which are the blueprint to achieve a better and more sustainable future for all
Sustainable investments have performed well in recent years, often delivering higher returns than the broader market
UN Sustainable Development Goals
Invest in Positive Change
Positive Long term financial performance
Put your money behind ideas that help communities take control of vital assets and services
Empowering Communities
Sustainable investing connects investors with innovative companies and organizations working to create a better and more sustainable future for all
What do we mean by “Sustainable Investment”
In 1982, the United Nations defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs”. Or as Sir David Attenborough put it, “If you want to know if something is sustainable just ask yourself“ can we do this over and over again forever”.
Sustainable investment means that we need to keep three things in mind at once. Social
progress, the environment and economic development – or people, planet and profit.
To discuss your own individual circumstances, please click here to book a meeting.
Here are some reasons why sustainable and impact investment approaches can be advantageous for savers compared to traditional investments:
1. Growing awareness and demand;
As global awareness of environmental, social, and governance (ESG) issues increases, demand for sustainable and impact investments is surging. This demand can lead to higher valuations for companies which in turn can generate better returns for investors.
2. Regulatory tailwinds;
Governments around the world are implementing policies and regulations to address climate change and other ESG-related concerns. Companies that prioritize sustainability and social impact are better positioned to benefit from these regulatory shifts, while those that do not may face increased costs and operational challenges, negatively affecting their financial performance.
3. Risk management;
Companies that integrate ESG factors into their business models and operations are generally better at managing risks associated with climate change, resource scarcity, social inequality, and corporate governance. By reducing these risks, sustainable and impact investments are better equipped to deliver long-term value and stability to investors.
4. Innovation and competitiveness;
Companies that adopt sustainable practices and invest in social impact initiatives are more likely to foster innovation and maintain a competitive advantage in the market. As consumers and investors increasingly prioritize ESG factors, companies with strong sustainability and impact profiles can capture larger market shares, boosting their growth potential and returns.
5. Long-term orientation;
Sustainable and impact investments typically focus on long-term value creation, which can lead to more stable and consistent returns. This long-term perspective helps to mitigate short-term market volatility and can provide better risk-adjusted returns for investors.
6. Aligning investments with global goals;
By investing in companies and projects that prioritize sustainability and positive social impact, investors are contributing to the achievement of essential global goals, such as the United Nations' Sustainable Development Goals (SDGs).
Supporting the United Nations' Sustainable Development Goals (SDG's) helps to protect our planet, strengthen and empower local communities as well as open up and develop new market opportunities
In conclusion, real sustainable and impact investments can offer the potential for better long term returns than traditional investments by capitalizing on the growing demand for ESG-focused companies, benefiting from regulatory changes, managing risks more effectively, fostering innovation and supporting the transition to a more sustainable, just and equitable global economy.
For details on how to check if your portfolio is aligned with both your financial and ethical objectives contact us to book a meeting.
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