Responsible Investments: What Economic Players May You Support Via Multi-Sector Solutions
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 later allow investors to drive change in today’s society by promoting the overall improvement of ESG practices among economic players.
What Is A Multi-Sector Solution?
Multi-sector solutions (including "best-in-class" solutions) aim to encourage and work alongside players in every sector of the economy to improve their ESG practices over the long-term. Among others, this approach is anchored in engagement.
These solutions enable you to finance the most virtuous economic players in each sector based on the integration of sustainable development criteria.
The multi-sector aspect of these solutions produces a more diffused extra-financial impact than thematic solutions.
What Is Engagement?
"Engagement" is an approach used by asset managers to represent their clients. It consists in supporting and encouraging economic players in their long-term improvement of ESG practices. This engagement is shown in two complementary ways: firstly, by exercising voting rights and secondly, by establishing a long-term dialogue with economic players. Through these actions, asset managers have regular opportunities to join forces with their competitors and direct the same message to economic players.
What Economic Players May You Support Via Multi-Sector Solutions?
It is possible to encourage and support all industry players in the long-term improvement of their ESG practices even if some sectors are not naturally associated with sustainable development. Multi-sector solutions target the most promising economic players in terms of ESG practices.
Below are some examples:
- A service company which develops a proactive career management program and ensures that the work-life balance is respected in order to develop staff loyalty.
- A cosmetics company which limits the impact of its products on the environment by reducing the amount of packaging it uses.
- An oil company which stands out from the competition by directing its energy mix towards renewable energies and reducing its greenhouse gases.
**Please contact your private banker for details of these investment solutions.