GRIMALDI & PARTNERS: What does "sustainable investments" mean?

By Silvano Grimaldi , CEO Grimaldi & Partners 

Are sustainable funds also invested sustainably? Silvano Grimaldi, CEO of the independent asset management company Grimaldi & Partners AG, gives a short and concise answer.

The independent asset management company Grimaldi & Partners AG is currently one of the few asset managers to have received a FINMA license under the new Fidleg/Finig laws.

The concept of sustainable investments
The concept of "sustainability" includes long-term thinking and the best possible protection of scarce resources. Despite all efforts, a satisfactory taxonomy for assessing sustainable activities and actions is still lacking.

Is a sustainability fund invested sustainably?
Funds that claim the “sustainability” label for their investments should therefore be questioned critically, since usually only individual criteria that are fundamentally relevant for the term “sustainable” are taken into account. Although this can give the buyers of such investments the feeling of "doing good", it is primarily only the fund providers who increase their fee income in this way. It becomes particularly problematic when certain investment opportunities are excluded due to the emphasis on individual criteria. A company that produces steel, for example, can only invest in low-CO₂ technologies if it can previously generate the necessary financial resources with traditional steel production, etc.

The current situation of a company should never be used as the basis for an assessment of sustainability, but  only the future course of action planned by this company  and the continuous review of the implementation of the plan. (Grimaldi & Partners/mc/ps)

© 2022, Grimaldi & Partners AG

GRIMALDI & PARTNERS Independent Asset Management is a renowned independent Swiss asset manager domiciled in the city of Zurich. The management, Silvano Grimaldi, Master’s Degree in Economics and Reto A. Lyk, PhD. in Law, are distinguished former bankers with an excellent reputation and more than 25 years of professional experience in asset management industry. The top-class management team ensures that business is run perfectly for the benefit of our customers. Grimaldi & Partners stands for independent, neutral, transparent, cost-conscious, performance-oriented asset management with better asset protection.



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