Sustainable investing – putting it in context
Background: The EU Sustainable Finance Disclosure Regulation requires financial market participants to disclose sustainability information.
The EU Sustainable Finance Disclosure Regulation requires financial market participants to disclose sustainability information.
The debate around “Sustainable investing” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.
Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.
For executives, the main question regarding “Sustainable investing” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?
A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.