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Sustainable investments are booming, study finds

Sustainable investments are booming, study finds

The market for sustainable investments grew 82% in 2017, hitting a total of CHF 390.6 billion.

According to the study, which was carried out by Swiss Sustainable Finance and the University of Zurich, sustainable funds now account for 8.67% of the overall Swiss fund market.

Ueli Maurer, member of the Swiss Federal Council, said in the report: ‘In the world of finance, a sustainable approach is undoubtedly becoming increasingly important. I am impressed by the financial industry’s resolve to the Paris Climate accord by forging ahead with the integration of sustainability criteria into its finance and investment decisions.’

The study also named the top 10 market players for sustainable investments by assets under management.

UBS scored first place with a considerable 23.1% market share, followed by Credit Suisse with 14%. Pictet and Partners Group tied in the middle of the pack with 8.1%, while OLZ was ranked 10th at 1.8%.

The report noted that ESG integration is the most common approach in broad sustainable investment policies. The total invested in this approach rose 90% in 2017, jumping from CHF 99.5 billion in 2016 to CHF 188.9 billion the following year.

The exclusion of controversial business practices or areas was another popular method, worth CHF 142.6 billion. It is applied to 37% of all sustainable investments in Switzerland, most frequently targeting weapons production and trade, tobacco, nuclear energy production, and human rights violations.

Other less typical exclusions include pesticides, palm oil, driftnet fishing, animal testing and radioactive materials.

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