globalen
The EU’s SI regulation is both visionary and challenging

The EU’s SI regulation is both visionary and challenging

23-06-2021 | Insight

The key challenge is to move from ESG integration to impact investing.

  • Victor  Verberk
    Victor
    Verberk
    CIO Fixed Income and Sustainability

Speed read

  • The EU is setting the standard for sustainable finance
  • Investors need to stay innovative and apply a range of new skills
  • Robeco has a range of SI solutions, across asset classes

With its Action Plan on Sustainable Finance, the EU is setting the standard for the rest of the world on how to move towards sustainability and inclusivity, says Victor Verberk, Robeco’s CIO for Fixed Income and Sustainability.

In his keynote address to the 2021 RI Europe conference, Verberk describes the EU as having created a level playing field for investing, and that Asia and the US will likely follow the example.

The regulation is complex, though, and requires access to good quality, forward-looking data. It also calls for a reinvention of the way portfolio managers approach their work: it’s no longer acceptable to focus only on alpha generation, and investors are having to incorporate a broad range of new skills in order to manage a carbon budget, achieve impact, and report on progress.

Stay informed on Sustainable Investing with monthly mail updates
Stay informed on Sustainable Investing with monthly mail updates
Subscribe

“The right thing to do”

This transition towards truly sustainable investing is still a work in progress for the investment industry. “But it’s the right thing to do,” Verberk says. “Embrace it; it is the future. Making the transition from ESG integration towards impact – that is the key challenge for the industry.”

To meet this challenge, investors will have to stay innovative. He explains that, because sustainability topics such as climate change, loss of biodiversity, and human rights are complex, understanding the science and doing the research is critical for coming up with innovative investment strategies that advance sustainability goals.

Robeco has provided a range of investment solutions in this regard. Among these are equity and credit strategies that focus on contributing to the SDGs, active ownership-driven equity products, and our climate strategies. The latter include the first global bond strategy fully aligned with the Paris Agreement.

Watch the keynote address

Logo

Disclaimer

The information contained in the website is solely intended for professional investors. Some funds shown on this website fall outside the scope of the Dutch Act on the Financial Supervision (Wet op het financieel toezicht) and therefore do not (need to) have a license from the Authority for the Financial Markets (AFM).

The funds shown on this website may not be available in your country. Please select your country website (top right corner) to view the products that are available in your country.

Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

By clicking Proceed I confirm that I am a professional investor and that I have read, understood and accept the terms of use for this website.

Decline