Since the advent of SFDR, the impression might have taken hold that suddenly many investment products have reached different shades of green – while at first glance not many things have changed. In addition, many investment managers claim implementing sustainable investment solutions, while everybody’s intuition senses that the world in which these investments take place is all but sustainable. This cognitive dissonance leads to a feeling of unease and ultimately to the suspicion of greenwashing.
During its session in the LSIW22, Banque de Luxembourg aims to deconstruct the topic of Sustainable and Responsible Investment to address these cognitive dissonances and to indicate paths mitigating them. Indeed, it is important to realise what Sustainable and Responsible investing is able to deliver and which are its reasonable boundaries. These differ among strategies (exclusions, best in class, impact …) and asset classes (listed equities, bonds, impact bonds, private equity, blended finance) asking for differentiated interpretations and conclusions.
In essence: there are viable, intellectually sound solutions to address our current challenges, but none of them is simple.