While many ESG investors use active stock selection, a passive or index-based approach is equally well-suited to ESG. Sustainable indices can be used to express a variety of different goals, including ESG integration, convictions on sustainability, or access to themes linked to the UN’s SDG framework, such as clean water or gender equality.
Passive investment strategies have democratised access to financial markets at low cost, features that are entirely consistent with a focus on ESG goals. And both passive and ESG investment approaches are data-driven. Indexing giant MSCI estimates that $180 billion was allocated to its ESG indices between 2014 and Q2 2019 – an amount that’s only likely to increase over time.
FOR PROFESSIONAL CLIENTS ONLY. CAPITAL AT RISK.
This communication is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2014/65/EU. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on www.lyxoretf.com, and upon request to firstname.lastname@example.org.
Except for the United-Kingdom, where this communication is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658, this communication is issued by Lyxor International Asset Management (LIAM), a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2014/91/EU) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority).