The new Swiss FOEN-commissioned (Federal Office for the Environment) study, headed by South Pole Group and CSSP (Center for Social and Sustainable Products) reveals that, in most cases, better returns are achieved in climate-friendly investment strategies compared to traditional investments. The study was recently presented at the EU Impact Forum in Zurich.
The Paris Agreement of December 2015 states that the international community wants to align future finance flows with climate-friendly development. The main objectives of the study was thus, first, to expand knowledge about determining the climate impact of finance flows, and second, to examine the performance of investment strategies that are more climate-friendly.
The report shows that for equities and corporate bonds, determining the climate impact is relatively easy, and the offering of relevant climate-friendly investment strategies is also increasing. The study also proves the historical returns of such investments in line with the market. A set of recommendations are provide for investors, including establishing the climate impact of portfolios, defining strategies, setting goals and establishing guidelines in order to address the risks associated with climate change and recognize opportunities, as well as creating transparency.