Sustainability can certainly help asset managers out of the crisis. At least that is what Roland Rott, Head of ESG at La Française Asset Management, says. The lockdowns caused by Covid-19 and the drastic collapse of the capital markets will cause damage to the real economy.
That is certain. Even years later, the side effects will be felt. The distribution of the considerable state financial aid automatically determines which sectors will dominate in the future. In addition, the relationship between the private and public sectors will be permanently altered by the influence of governments. A sustainable economy is becoming a trend. Strong supply chains, the health of the workforce, and extensive customer relationships are part of it. Sustainable investment strategies are measured by long-term investment returns.
Investment analyses focus on resource scarcity, climate change, technological progress, demographic change and urbanisation. The reasons why ESG and impact analyses are becoming increasingly important are as follows:
- Identification of financial risks resulting from externalities, regulatory changes and reputational damage. In climate protection, these include the costs of CO2 certificates, fines for exhaust gas manipulation and emission restrictions.
- ESG and impact analyses as valuable assessment factors.
- Governance, adaptability and innovation capacity of companies are keywords to estimate the resilience of a company in the corona crisis and thus to gain a significant competitive advantage.
However, the focus of asset managers must be set on the here and now. Human capital and the use of capital are in greater demand than climate protection or CO2 reductions. Sustainability is thus becoming a new economic guideline to normality.
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