Trying to get a " double dividend "

According to Vontobel's approach to Impact Investing there is what they have referred to as the concept of a " double dividend ": it consists of the opportunity for investors to generate financial returns while at the same time knowing that they are actually making a positive and tangible impact on our Planet and our society. They strongly believe that measuring impact requires the adoption of a structured and repeatable investment approach, such as the one they describe below.

Is change possible?

Investors are adopting increasingly sustainable lifestyles and demand that their investment portfolios mirror this change. the Vontobel Sicav has been working in the area of sustainability for several years. In 2008 they launched their first Impact Investing strategy. Since 2009 they have been buying CO2 certificates to offset all emissions from operations. In addition, since 2020 Vontobel has been a member of the Global Impact Investing Network (GIIN) and has been an active participant in the working group that set standards for Impact Investing in listed equities. In order to select companies that contribute to improving our lives, minimize our ecological footprint, and achieve good financial performance, Votobel applies a set of well-defined financial, impact, and sustainability criteria; these criteria are quite rigorous. In many cases, the number of SDGs that the impact strategy assigns to a company tends to be lower than what the company itself claims or what rating agencies assign to it.

Vontobel's impact investments are subject to a rigorous evaluation, measurement and reporting framework.

What is the potential impact of the companies in which you invest?

The graphic illustrates the potential of a 1 million euro investment.

We integrate some additional sustainability considerations mainly to reduce risks:

Systematic and regular evaluation of companies within the portfolio creates a greater level of transparency for investors and simultaneously helps us better engage with the company's management on the potential benefits of its activities and the risks to which it is exposed. To ensure that the holdings are always in line with the impact objectives that Vontobel has set for itself, they perform an impact strategy assessment for each of the companies in their portfolio based on the five pillars on a regular basis.

Fears of " greenwashing "?

So why are some investors still hesitant to engage in sustainable investment strategies? Vontobel 2023's Impact Investing Survey found that 45 percent of investors are wary and avoid investing in impact strategies because of concerns about " greenwashing " in the industry. As a result, investors are cautious and place significant importance on transparency of information about holdings, measurability of impact outcomes, and a company's overall credibility in the industry.

Trust is essential:

The data show that clients value the Sicav's rigorous approach, transparency, and long-term commitment. Several ESG rating agencies have rated their products and services, and their findings are used by clients, asset owners, and financial advisors. To increase transparency, they not only show impact data, but also a selection ESG, climate, and impact ratings prepared by external sources.

They strongly believe that people can make a difference and generate positive impact through their investments, including through listed equities. <so they work on the front lines to help you achieve the " double dividend ": contributing to change, achieving your goals, and at the same time having a tangible and measurable influence.

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