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- Join us in the world of socially responsible investing
Join us in the world of socially responsible investing
About socially responsible investing
In the context of EU policy, socially responsible investing refers to investments that comply with criteria for sustainable investments (so-called ESG criteria). These criteria consider economic growth that reduces adverse impacts on the environment (E), while taking into account social (S) and governance (G) factors. ESG criteria thus lead to long-term investments in sustainable initiatives and projects. Environmental aspects consider energy consumption, waste and water management activities, and other issues. Social factors take account of relations with employees, suppliers, customers, and communities within businesses’ local markets. Governance focuses on company management, audits, inspections, and shareholder rights.
By definition, sustainable investments mainly target the so-called green projects that promote sustainable development and transition to a climate neutral economy. They also help achieve objectives of the EU Green Deal that aims to reduce emissions by 55% by 2030 compared to 1990 levels. In order to reach this goal, the European Union intends to invest approximately 350 billion euros annually between 2021 and 2030. Even though European funds make efforts to contribute to climatic neutrality, they are not able to secure all funds to reach the relevant goals. This is why socially responsible investments play a key role in this context.
Getting started with socially responsible investing
As individuals, we cannot face all challenges associated with climate change. However, we may be able to do so if we all come together – by making socially responsible investments, thereby promoting businesses that make a better world. One way how you can get started includes ESG mutual funds. Resources from these funds are used to finance projects that promote sustainable growth. We offer these funds in Komerční banka together with Amundi, such as CPR Food For Generations Fund, KBI Water Fund, CPR Invest – Climate Action or KBI Global Sustainable Infrastructure Fund.
This article has been prepared in collaboration with CIRA Advisory.