Financial investors are paying more and more attention to sustainability and to the environment. Indeed, the Italian magazine “Focus Risparmio” published an interesting interview with Luciano Diana, Senior Investment Manager of Pictet Asset Management and Head of the Global Environmental Opportunities Fund. Diana intends to identify investment opportunities that respect the ESG indexes that are designed to support common approaches to environmental, social and governance (ESG) investing. These are three aspects that can very well get along, as shown by numerous examples. The article points out that environmental investments are increasingly attracting the general public and in 2018 sustainable funds are no longer a niche choice and enter the global portfolios without problems. A recent research found out that 24% of ETFs (Exchange Trade Funds, ie funds that replicate the performance of an index, such as the Dow Jones) and 15% of mutual funds follow sustainable investment criteria. Diana notes that private investors and institutional investors are looking for solutions that allow them to do well while doing good, in other words, to get a economic return along with a positive environmental impact. Of course it is not that simple. For example, according to Diana, the ESG ratings are very difficult to evaluate, however it is an effort that we should make.
3 January 2019