Investment Strategies of Candriam Yield Profits for Involved Parties

In the ever-evolving world of finance, a new approach is gaining traction - the holistic investment approach. This strategy, which prioritizes Environmental, Social, and Governance (ESG) practices, is revolutionizing the way asset managers evaluate investment opportunities and risks.

This approach extends beyond assessing a company's performance within its sector. Instead, it considers a company's contribution to major sustainability challenges, adopting a comprehensive and holistic view.

This shift towards sustainability is not merely a passing trend. Businesses are actively working towards decarbonizing economies, preserving ecosystems, and promoting equal opportunities. The green economy, comprising sectors such as renewable energy, eco-friendly buildings, sustainable transportation, water management, waste management, and land management, is a testament to this change.

Even industries traditionally outside the green economy, like semiconductor manufacturing, are finding ways to contribute. By providing components for electric vehicles and their charging infrastructure, semiconductor manufacturers are playing a significant role in climate change mitigation.

The renewable energy sector, in particular, is seeing a surge in ESG-focused strategies. An ESG strategy in this sector might involve investing in companies manufacturing wind turbines or solar panels. Major corporations like Coca-Cola, Dell, DuPont, GE, and Pfizer are integrating Sustainable Development Goals (SDGs) into their strategic planning.

Investment firms like New York Life Investments and Candriam are leading this charge. Their ESG strategies in the renewable energy sector involve a holistic analysis of environmental, social, and governance factors. They systematically integrate these factors into investment decisions, identify and minimize sustainability risks early, support portfolio companies in exploring ESG opportunities, and align investments with SDGs, such as clean energy access and climate action. They measure impact through metrics like carbon intensity, social contribution, and governance practices.

The importance of ESG factors in assessing corporate performance is not a new concept. Numerous studies have highlighted their significance, and for investors, considering ESG factors is now a fundamental duty in wealth management.

New York Life Investments and Candriam's commitment to sustainable investing includes this holistic analysis of ESG factors. They believe that traditional financial parameters alone cannot fully evaluate investment opportunities and risks. By considering a company's ESG practices, they gain a comprehensive view of its prospects.

Candriam's over 25 years of experience managing relevant portfolios demonstrates that considering ESG practices can lead to better risk-adjusted returns. Furthermore, a holistic investment approach, combining key ESG factors with sustainability-driven investment themes aligned with the SDG goals, can boost return potential.

Better risk-adjusted returns can be achieved by considering a company's ESG practices during investment decision-making. Companies are adopting SDGs as a reference framework to demonstrate their contribution to these goals, and investors are taking notice.

In 2015, the United Nations outlined Sustainable Development Goals (SDGs) to combat climate change, end hunger and poverty, ensure equal opportunities, and restore ecosystems. The holistic analysis of ESG factors is crucial for sustainable investing, as demonstrated by New York Life Investments and Candriam's experience.

In conclusion, the holistic investment approach, with its focus on ESG factors and sustainability-driven investment themes, is transforming the financial landscape. By considering a company's contribution to sustainability challenges, investors can make informed decisions, boost return potential, and contribute to a more sustainable future.