Eco-footprint as a criteria for investment

© denisismagilov, #88739935, 2017, source: Fotolia.com

Information

Impacts:
Energy Carbon
Sector:
Financial, insurance and real estate services
Size of company:
Large (more than 250)
Advancement in applying resource efficiency measures:
Beginner Intermediate Advanced

Investing in everyone's future 

  • Tapping into a need for eco-responsible investment, Pictet developed a sustainable bond rating system
  • The system is gaining traction among pension funds 

Pictet asset management is a Swiss investment firm which has developed strategies in Green finance and socially responsible investment (SRI).

They have created several resource-related funds, including a Clean Energy fund, launched in 2007. This fund's portfolio comprises companies that are involved in the transition towards a low carbon economy. This include infrastructure and resource companies, but also equipment manufacturer and carbon-reducing or energy efficient technology developers.

In 2010, they launched a new country bond rating which rates countries based on their ability to provide a high quality of life at a minimal ecological cost. Information is based on a ratio of Ecological Footprint to UN Human Development Index (HDI). This rating is then implemented in clients' portofolios.

The market for SRI and green finance is still small compared to traditional investments, but is fastly growing. Such oriented investements are key to the environmental transition.

Finance for change, Case Story: Pictet Asset Management, https://www.footprintfinance.org/our-work-3/case-story-pictet-asset-man…

Pictet Asset Management. 2016. Environmental and Best in Class strategy. https://www.am.pictet/en/uk/global-articles/2016/pictet-asset-management/sustainability-and-investments-nov2015#PAM_Section_1

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