What's the impact of SRI?
Michael Diaz
Consulting in Sustainable Finance - Nothing good happens: Unless you do it.
Let's have a look at two charts and what they may have in common. Above the chart which shows the development of sustainable investments in Switzerland from 2007 until 2017 (new report expected in June). Below a chart from the actual IPBES report who shows the rate of extinctions since 1500.
What do they have in common? Well, I would say both show exponential growth. What else do they have in common? I would say: nothing. And that may be the problem. Even though we today have billions of investments in SRI, there seems to be no effect on biodiversity. You will say: Even though we have billions in SRI, the amount ist still too small to have an impact. According to the Global Sustainable Investment Alliance (GSIA) this is not the case. Have a look below.
If the figures are reliable, volumes are significant, especially in Europe. Well, then why there is no positive impact on biodiversity of SRI? Why don't we see results much faster? It may have to do with a chart which shows another exponential growth.
We should ask more critical questions about the impact of SRI, where the limits are and what needs to be done to adjust claims, expectations and reality. We should better report on positive impact of SRI. If we're not able to demonstrate positive impact of SRI, maybe we should review the concept of SRI altogether.
Leiter Anlageberatung Deutschschweiz bei Alternative Bank Schweiz
5yVery interesting charts. I fully agree. Finance should promote good (sustainable) business areas instead of just supporting less „bad“ (unsustainable) business. One way is to focus on positive direct impact. And we should leave gdp-thinking for the sake of nature and common wellfare!