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Complete exit from climate-damaging plants or have a positive impact on companies? Opinions are divided.
The market for sustainable investments is booming. In the last decade, the idea of a few has gone mainstream. In Switzerland alone, the volume has grown from 40 to almost 2000 billion. But the bigger the market, the bigger the field of critics.
For some it’s all too slow. Climate protectors accuse investors of greenwashing. Others doubt that green and profitable are possible at the same time. Now that companies dealing in coal, oil and gas are again generating high returns.
«fighting phase»
Mirjam Staub-Bisang has been dealing with sustainable investments for years. Today as Swiss boss of Blackrock, the largest asset manager in Switzerland. Ten years ago, sustainable investments were still a niche topic.
«As Schopenhauer put it so well: A new idea is first laughed at, then fought against and at some point it is taken for granted. Now we’re in the combat phase,” says Staub-Bisang.
Climate risks are investment risks.
Blackrock – like other large investors at the moment – is being fought by US states such as Texas, among others. Blackrock and others are making life difficult for Texas oil and gas companies with their sustainability efforts, the state government argues. That’s why she will end the collaboration with Blackrock.
Staub-Bisang does not want to be put off by this: “We take this criticism very seriously. Ultimately, however, we have a clear conviction: climate risks are investment risks – we cannot deviate from our course here.” However, following the course does not mean that Blackrock will get out of all climate-damaging companies as quickly as possible.
Harsh criticism from climate protectors
That is not possible and, moreover, does not make sense, emphasizes the Blackrock Switzerland boss: “If we sell these companies, they will not disappear and CO2 emissions will not be reduced. There comes a point when the mines have to be closed and the oil wells shut down.” But today we are in a transitional phase. “Net zero” was finally announced for 2050.
This attitude has not only recently been met with harsh criticism from climate protection groups. The attempt to exert influence takes too long and is often pure greenwashing. Financial investors must withdraw from climate-damaging companies, they demand.
Investors woke up and realized: Not everything that glitters is gold – not everything that is labeled as sustainable is sustainable.
Sabine Döbeli, the managing director of the Swiss Sustainable Finance Association, which is committed to a sustainable financial center, disagrees. But she concedes: “More transparency is needed about what the goals of various sustainable investments are – including metrics that prove this impact. Be it at the level of companies, portfolios or the overall market.»
Alexander Wagner agrees. The finance professor at the University of Zurich is convinced that the market for sustainable investments will survive the current endurance test.
Legend:
The next few months and years will show how seriously the world’s asset managers take sustainability and climate protection – and whether they will actually subordinate the pursuit of short-term returns to the long-term, necessarily more climate-friendly perspective.
Keystone/AP/Sarah Hamaker
However, Wagner does not believe that growth will continue as before: “In some places it was exaggerated. Investors woke up and realized: Not everything that glitters is gold – not everything that is labeled as sustainable is sustainable.» Wagner believes there will be consolidation – and that’s a good thing.