sri newsletter 17th issue
april 2019

Sustainable finance in Europe, regulatory landscape and the future of investing

At a time when more and more individual investors are becoming aware of sustainable finance and users of sustainable investment solutions*, with financial stakeholders – manufacturers and distributors alike – expanding their ESG (Environmental, Social and Governance), Green and Social investment product set to choose from, it is worth reflecting on the fast changing regulatory landscape in Europe, one year after the EU Commission announced its Action plan for Sustainable Finance.

Indeed, while there is growing demand and support for sustainable investments, the challenges we face in terms of climate change for instance, require structural regulatory changes to gather pace and act in a more meaningful and efficient way across the continent.

We believe this issue of SR-highlights will give you a good indication of what is the direction of travel for sustainable finance in Europe, a direction into a more responsible future.

Download the full publication below

SRI NEWSLETTER 17TH ISSUE - APRIL 2019

RELATED INSIGHTS

COVID-19 FACTS & FIGURES
According to the IMF’s Managing Director, strong international cooperation on coronavirus vaccine could speed up the world economic recovery and add $9 trillion to global income by 2025. A WHO trial found that Remdesivir, Hydroxychloroquine, Lopinavir and Interferon have little or no effect on hospitalized Covid-19 patients. Gilead Sciences has questioned the findings of the WHO study saying data appeared inconsistent.
INCORPORATING QUANT SIGNALS INTO EU EQUITY SECTOR/STYLE STRATEGY: MAINTAIN A TILT TO CYCLICALS AND VALUE
We present an update of our proprietary equity valuation tool, based on quant models. It provides indications of over- or undervaluation for different sectors and styles of European equities, which is further enriched by our qualitative analysis. Currently, among European equity sectors, financials, energy, telecoms, and autos look undervalued while Pharma, utilities and software appear overvalued.
CHINA’S RECOVERY CONTINUED BUT A BIT SOFTER THAN EXPECTED
China's economic recovery continued in Q3 2020, although a bit softer than expected. Real GDP growth rose to 4.9% yoy, slightly below the Reuters consensus expectation of 5.2% yoy, but still a substantial upturn from the 3.2% yoy in Q2. On a quarterly base, growth dynamics softened to 2.7% qoq, after 11.7% qoq and -10% qoq in the two previous quarters.

*Retail investors accounted for 25% of global sustainable investing assets in 2018, up from 11% in 2016.
Source: Global Sustainable Investment Review 2018, published by the Global Sustainable Investment Alliance, March 2019.