Sustainability is the buzzword of this time. According to the FNG Market Report on Sustainable Investments 2019, sustainable funds and mandates have recorded their largest growth since the survey began, increasing by 41 billion euros last year in Germany alone. The global market for sustainable investments has even broader dimensions. Not least due to the rising number of pension funds, which are increasingly paying attention to ethically correct investing and taking the 17 SDG's of the UN into account. The EU is pushing the trend towards sustainable investment with new laws and regulations.
The two abbreviations ESG and SDG alone illustrate this: Investors who immerse themselves in the subject of sustainability without understanding its contents quickly lose themselves in a jungle of different definitions and concepts. In the current issue of the trade magazine GLOBAL INVESTOR, our managing director Frank Ackermann writes about the increasing relevance of sustainability in financial investments and the difference between ESG conformity and SDG investments.
In his guest article, Frank Ackermann describes an important differentiator between ESG and SDG criteria: ESG conformity is primarily about avoiding damage and risks. SDG investments, on the other hand, actively and concretely promote the good. For investors, this means an important and strategically significant difference.