#Investments — 21.07.2017

Investing Responsibly Through Thematic Solutions

Eléonore Bedel

Responsible investments cover all asset classes and all geographies. Two approaches with different levels of risk and impact exist: multi-sector solutions and thematic solutions. The latest allow you to encourage economic players that offer practical solutions to sustainable development issues.

What are thematic solutions?

Thematic solutions consist in financing economic players whose activity offers practical solutions to a specific social and/or environmental issue.

These solutions allow you to finance economic players which generate a significant share of their revenues from a sustainable development activity (or “theme”). Therefore, they guarantee that your investment has a direct impact on the social/environmental issue(s) of your choice.

Among these solutions, Impact Investing offers the greatest impact.

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What is impact investing?

Impact Investing refers to investments made in organisations (“investees”) which have an intentional social and/or environmental impact. This impact must be measurable, measured and publicly disclosed. Besides financing, the asset manager may support investees in order to optimise the extra-financial impact and the financial return on investment. Due to the structure and nature of the portfolio’s investees, these products may have a higher liquidity risk than other responsible investments.


What economic players may you support via thematic solutions?

Thematic solutions allow you to finance very diverse, listed/unlisted economic players which offer practical solutions to a specific social and/or environmental issue.

Here are a few examples:

  • A social enterprise which recycles used computer equipment through the employment of people with mental disabilities to enable them to acquire a certain level of autonomy through their job.
  • A financial institution which offers micro-credit to populations which do not have access to traditional financial services, with a view to improving their living conditions.
  • A company which has developed innovative technology that seals water leaks in pipes without recourse to large-scale work.

 

Please contact your private banker for details of these investment solutions.