Climate change with its consequences for our and future generations is one of the greatest challenges of our time. Sustainability has thus not only become the leading topic of political, social and economic discourse, but also occupies a firm place in financial consulting.
In this context, the European Union strongly supports the transition to a low-carbon, resource-efficient and more sustainable economy and is at the forefront of creating a financial system that supports sustainable growth. Since 2018, the European Commission has put in place a comprehensive regulatory package on sustainable finance that will have a significant impact on financial markets and financial advice.
Demand from investors for sustainable investments has never been higher and will continue to increase in the coming years. Sustainability opens up interesting investment opportunities with a clear conscience. The range of sustainable investments is diverse and often does not yet follow uniform criteria, and it is not yet easy for advisors to keep track of the selection. That's why we at Moventum offer services and tools to integrate ESG and sustainability into everyday consulting.
As the regulatory landscape around ESG is constantly evolving, we continuously prepare regulatory requirements as well as practical tips for our consultants, for example. [1]. Advisors can even use ESG and sustainability information in their own communications. With our support, the disclosure regulation or the technical regulatory standards, for example, do not have to be hurdles for advisors.
In addition, the ESG Fund Rating with Morningstar Sustainability Ratings and Scores is available in the MoventumOffice securities trading platform. The Morningstar Sustainability Rating intends to measure the risks and opportunities of the equity component in the portfolio compared to peers from the same Morningstar category in terms of environmental, social and governance ("ESG") factors. The Morningstar Sustainability Rating is a two-step process. An ESG rating from Sustainalytics( a Morningstar company) receives a Morningstar Portfolio Sustainability Rating. A sustainability rating is assigned to any fund where more than half of the included investments are rated by Sustainalytics and that is in a Morningstar category with at least 10 rated funds. This means that the rating is not limited to funds with an explicit sustainability mandate.
We see it as our contribution to make sustainable financial consulting better.
Guest article by Sabine Said, Executive Vice President von Moventum S.C.A.
