Prof. Dr. Busch in conversation with NZZ The Market on sustainable investments

Photo: Michael Henderson / unsplash.com

The focus of investments on environmental, social, and good corporate governance has moved from a niche to the mainstream. Accordingly, demand for sustainable or ESG investments has steadily increased in recent years.

Increasingly, critical voices are now emerging, citing the danger of greenwashing in some investment products in this strong growth. In an interview with NZZ The Market , Prof. Dr. Busch explains that it is crucial that fund providers clearly and transparently disclose their portfolio construction methods.

An understanding of the various approaches to sustainable investing is also important. Merely trading on the stock market, i.e., adding shares of green companies to one's portfolio and eliminating climate polluters, has "no additional positive impact on the environment." Strategies that focus on ESG-compliant voting at general meetings or engagement promise a more targeted impact. An understanding of the various investment approaches helps investors select the appropriate strategy(s) and reduces the risk of misunderstandings.

You can read the full article from NZZ The Market here .