Looking at ESG’s “big picture” up close

ESG Advisory

Learn how to invest sustainably without losing sight of the details that matter.

ESG Advisory from A to Z

Since the 1990s, the question “Why ESG?” has never been answered with such a unanimous reply. Today, investors’ goals and the world’s need for action—the big picture—are clearer than ever. However, when you get into the details, complexity increases, and with it, the uncertainty about getting active with ESG investing: “How do I find an ESG investment that’s right for me?”

Find out how ESG Advisory can help you with these investment questions.

Seize opportunities, avoid mistakes

Today, companies that operate sustainably represent more than just a “feel-good” investment opportunity. Investing in such companies allows you to better assess risks and focus on long-term performance.

 

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ESG: Three letters—three aspects of sustainability

Letter E in ESG - a man riding his bike

E for Environmental

 

The “E” in ESG focuses on a company’s environmental aspects. This includes factors such as its:

  • greenhouse gas emissions, for example, in its production activities and products,
  • compliance with environmental standards,
  • resource efficiency,
  • among many others. 
S for social - a business man and woman are talking with each other

S for Social

 

The “S” in ESG examines how a company behaves towards society. This includes factors such as its:

  • attractiveness as an employer,
  • guarantee of providing equal opportunities to its employees,   
  • controversial products and supply chains,
  • as well as numerous other factors. 
Letter g - A business man talking on the phone

G for Governance

 

The last letter, the “G” in ESG, is the one that attracts the least attention from the public. For investors, however, aspects of a company’s corporate management and culture play an important role. This includes factors such as:

  • transparency in its business activities,
  • the composition of its top management and their remuneration,
  • prevention measures it has taken against fraud or corruption,
  • and many others.

Four reasons arguing for ESG

What’s in it for you?

Investors have always been concerned that their money should be invested the “right” way. Moreover, their personal preferences, values,​ and convictions are increasingly important factors in their investment decisions.

By taking ESG criteria into account when investing, you are taking active steps to align your personal investment goals with aspects of sustainability. Here are some key reasons why:

1. Competitive advantage

The EU Action Plan aims to redirect financial flows in such a way that they promote sustainable development. This is creating a competitive advantage for companies that are rated positively as ESG investments. In the long term, it ought to be easier for them to secure financing on favorable terms.

2. Controlling risks

Investors who take ESG factors into account can reduce their risk. Which is why we promote investment strategies that follow ESG principles. Doing so can help prepare your portfolio for the future and that of your children.

3. Investing based on conviction

Do you believe your money should flow into companies that are really living up to their responsibilities? ESG investing makes it easier for you to identify such companies and more accurately reflect your convictions when investing.

“What does sustainability mean for you personally?”

This is the first question we always ask our clients. Because no matter where they prefer to take measures in their own private life – for example, by driving an electric vehicle, eating less meat, or recycling more – our experience shows that many clients prefer to base their investments on their own convictions. So we want to make sure to reflect these as much as possible in their portfolio.
Portrait of Dennis Podszius

Dennis Podszius

Senior Relationship Manager, ESG Investment Specialist

Our ESG Advisory in detail

What you can count on

Vontobel experts and best-in-class partners

At Vontobel, our in-house investment experts support you with up-to-date analyses so you can make informed investment decisions. They not only recommend our own sustainability funds, but also advise you on selecting funds offered by third-party providers, and on individual securities. For this reason, we cooperate with best-in-class partners for research and external funds.

Monitoring and transparency

Your ESG investments are continuously monitored by our expert teams. If your portfolio is no longer in line with the standards you have defined, we can alert and advise you.

Navigating through the jungle of different ESG approaches

The number of approaches to ESG is increasing—and so is the volume of regulations concerning transparency and other requirements. In this ever-growing jungle of new developments, we provide you with transparent information. Of the different ESG factors and principles, which ones are relevant to you? We answer this question with your individual sustainability preferences in mind, taking comprehensive consideration of all the relevant regulatory obligations.

In-house ESG approach to Swiss equities

Our experts for Swiss Equities analyze around 100 companies operating in a wide variety of sectors. Their structured method of determining price targets takes ESG criteria and share recommendations into consideration—instead of merely sticking an “ESG label” on a particular share. In this way, ESG criteria are given greater, more precise weight.

FAQ: Understanding sustainable investing and ESG

Here you will find answers to the most frequent questions our experts are asked about ESG and sustainable investing.

While there are many different providers who issue ratings for individual securities and funds, they do not all consider the same factors—and thus they may not arrive at the same ratings. This means there is a risk that the specific criteria that are important to you as an investor might not be adequately covered.

This is why it makes sense to discuss making targeted investments in individual equities with an ESG expert. This way, the information basis for a decision can be broadened with research.

 

ESG is not always a top priority on investors’ agendas

Many of the issues that an ESG framework focuses attention on are structural Megatrends, for example climate change. This issue shares the characteristic with other megatrends that it will still be relevant ten or fifteen years from now. However, some market cycles play out in such a way that a specific megatrend may not be at the top of investors’ agendas; other events of global scope take center stage.  This leads to fluctuations in ESG investments. The war in Ukraine and the COVID pandemic are the most recent examples—with negative and positive effects respectively.

For new and experienced investors

1 hour consultation free of charge—by phone or in person

How can you integrate ESG into your portfolio as easily as possible? Our experts will be happy to contact you for an initial ESG consultation—with no obligation on your part.

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