Sustainable finance: beyond reporting to investment decision-making

The soaring sustainable investment industry has failed so far to convince of its robustness, and to reduce the environmental impact of economic activities. Institutional investors and asset managers lack the appropriate tools to build long term, relevant investment strategies. Available environmental metrics are not decision-useful: they are incomplete, binary, confusing, and mainly focused on reporting because of the influence of the international regulatory frameworks. Investors need environmental tools and methodologies which are: • Holistic: because environmental impacts are not just a matter of carbon • Transparent: for the sake of credibility and scientific opposability • Granular: because alignment metrics and exclusion factors only highlight the very green or the very brown, omitting all shades of transition • Applicable on all asset classes: in order to make aggregation at (diversified) investor’s level possible • Collaborative: “alone, one goes faster; together, people go further”, bringing users to work together is the best way to make them build tools which will meet everyone’s needs This is what the NEC (Net Environmental Contribution) has to offer. Created by investors for investors, the NEC has helped Asset Owners and Asset Managers since 2018 to implement smart sustainable investment strategies: listed equity, private equity, real assets, infrastructures, private debt, sovereign bonds, … In this webcast, you will learn about how the NEC, an environmental compass, can guide your investment strategies: a reporting metric, a compliance metric, but also and engagement and a decision-making metric, in a complementary way to other traditional or regulatory-focused tools.