Clearly defined exclusion criteria, best-in-class or ESG scoring and inclusion have arrived in the mainstream of institutional investment. The drivers of this development are, on the one hand, climate and reputational risks, which are reduced through sustainable capital investment. On the other hand, investments in explicitly sustainable topics such as alternative energy, water, health, etc. offer the prospect of outperformance. hold out the prospect of outperformance. Thanks to the Sustainable Development Goals and the EU regulations that are taking shape, the transparency of sustainable investments is improving. Greenwashing should soon be able to be unmasked as such.
fair-finance Asset Management pursues the vision of using funds in such a way that not only ethical or ESG requirements are fulfilled, but that these funds provide the greatest possible benefit, have a socially shaping effect and generate a socially relevant (social, ecological) return in addition to the financial return. Where possible, fair-finance is a pioneer: a separate rating was developed for sustainable real estate investments, which was the basis for the funding of the first real estate fund certified with the Austrian Eco-label. The interest rate for loans (private debt) is also based on sustainability performance. With the Microfinance Fund Index, the first benchmark in this high-impact asset class was created, and from its own social entrepreneurship fund, companies whose focus is on social returns receive equity capital to expand and thus multiply their impact. The fact that impact measurement does not yet function perfectly due to the lack of recognised KPIs and standardised processes does not prevent fair-finance from striving to maximise it.