This sustainable finance They are those who take environmental and social issues into account in a relevant way when investing. They represent and contribute to a profound shift in the economic paradigm. stable returns to investors. Therefore, most international organizations adhere to it and propose a set of principles and standards to support it. Therefore, the fact of investing is quite remarkable. responsible companies It’s already part of the new economy.
The number of investors who choose the assets in their portfolios not only based on financial criteria, but also taking into account the environmental impact of companies is increasing day by day. He works.
BBVA Spain Private Banking brought together different experts at the conference to analyze this new financial reality. “Sustainable investment, investment in a better future” Macro and market perspectives for 2023, and discuss where the investment should go in the future.
From an environmental point of view, decarbonization is key to reducing carbon dioxide emissions will blend into the atmosphere and achieve the goals of the Paris Agreement. expressed like this André Themudo, BlackRock Iberia Director of Sales, during his “Sustainable Investments: The Future in Your Portfolio” presentation last Wednesday. “More than 160 countries have signed the Paris Agreement. Commitment to reduce emissions to reach 0 net emissions by 2050. Likewise, many companies and businesses around the world have fulfilled their own internal commitments, proof that this is BBVA’s action on sustainability, as one of the 6 pillars this company works with is the entity that coincides with BlackRock”.
Since The biggest problem and challenge facing humanity is climate change. and global warming, Themudo suggested as a solution decarbonize planet and for that “it is essential to have alternative methods that allow us to maintain and increase production processes and services, but do so with clean energy.” The BlackRock expert explained that several agents intervened to reach the solution, for example ” governments with your support for a low carbon world, society who wants to reduce these emissions and finally, technology, which makes reducing costs faster and more scalable for all of us to achieve. international manager, “Climate risk is as important a factor as any company’s financial risk”and “the weather has a direct impact on the markets”. They also point out that “the integration of sustainability can help investors build more resilient portfolios and achieve better long-term risk-adjusted returns.”
One thing to note is, as Themudo emphasized in her speech, “Companies best prepared to face this climate transition are rewarded by the market, so it makes sense to invest in companies with sustainable ideas.”
One of the mutual funds that BlackRock expert gives as an example is the BGF Sustainable Energy Fund, which stands out with its investment in energy transformation and being a sustainable fund. Moreover, It has no geographical boundaries or sectoral exposure, and sustainability. In short, this fund has no other purpose than to invest in the benefits of the low-carbon transition.
Faced with the fact that the biggest problem facing humanity is climate change and its serious consequences, Ximo RagaEastern Territorial Private Banking executive advised in his speech sees sustainability as “a very good investment opportunity”. In this context, Raga said, “economic growth in the coming decades will be driven by the massive investments we will have to undertake, and the role of banks in this context is crucial.” Sustainability is one of the six strategic priorities. It addresses BBVA and the fight against climate change by focusing on and promoting inclusive growth to create a more just society among all. Therefore, regarding investments, “We are committed to those that have a sustainable and responsible nature, without losing sight of investments that have a social impact,” Raga said.
It should be noted during the meeting. the public actively participated by asking a series of questions addressed the speakers, where concerns about their investments were expressed. Therefore, one of the participants asked Ximo Raga if he found it more convenient to check deposits rather than a fund. Manager of Banca Privada Territorial Este, “in the current market we can find a small establishment offering deposits, but we find the same profitability in mutual funds. We at BBVA diversified fixed income mutual fundswith periods adjusted according to the profile of each customer, as well as includes deposits similar or even higher IRRs». There is one nuance, however, that “when interest is applied directly on a deposit, there is a withholding tax and it goes through the Treasury, whereas in the case of funds, what this implies is tax deferral. the ability of any saver to exchange their investment from one fund to another tax-free, unless you make a refund. In this way, we can plan our future and invest in the most suitable market for each profile without tax impact,” Raga concluded.
economic prospects
Roberto HernandezSpecialist in Strategy and Analysis of Private Banking Investments at BBVA the balance of the path the economy plans to follow this year. Thus, “a economic cooling on the horizon but without drama». “Looking at the second half of the year, the economic momentum is expected to lose its strength due to the negative effects of accumulating interest rate hikes and ongoing inflation.” And precisely on this last point, he assured that the downtrend, although still high, is consolidating: «Inflationary pressures eased in the first half of the yearalbeit slower than expected. He also noted: «central banks approach their maximum monetary tighteningand although the main inflation risk appears to have been overcome, the environment remains complex. That’s why the expert recommended being prepared to assume “volatility spikes”.
Regarding the type of entity, he emphasized Fixed income as “winning asset of 2023”, because its behavior is described as good in almost all possible macroeconomic scenarios». Hernanz concluded his speech by advising “be sensible and position ourselves for the most likely scenario, but invest in different financial asset classes”.
A sustainable solution for wallets
“Sustainable investment is a unique opportunity for investors to participate in the transition to a more sustainable and equitable future. For example, investing in renewable energy can help reduce greenhouse gas emissions and mitigate climate change. Investing in green technology can improve energy efficiency and reduce waste. investment socially responsible companies It can help improve working conditions and reduce inequality.” thus assured Alejandro HaliguaThe manager of the BBVA region in Alicante recommended making investment decisions “with sustainability in mind”, Searching for investments such as renewable energyIn short, companies that care about their employees and society».
There is no doubt that in recent years sustainable investment gains ground in the world of financeand more and more investors seek to make a profit while making a positive contribution to society and the environment. Based on this, at BBVA Banca Privada, «Help your clients make informed and sustainable investment decisions. We must deliver solutions that not only create profitability, but also make a positive impact on the world. Sustainable investment is not only good for the environment and society, it is also profitable. In fact, recent research shows that socially responsible companies may have better financial performance in the long run more than those who don’t,” Haligua said in her speech.
BBVA Private Banking has experts from BBVA and other organisations. identify relevant trendsIt is worth mentioning the ones related to sustainability for this year. They also offer specific advice, an important fact to be able to make the best decisions and invest appropriately.