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Responsible Economics. The opposite is no longer viable

Responsible economics means having a sense of responsibility and integrity not only towards the present generation but also to future generations – and to the real economy and the wider world. This is true sustainable thinking.

The importance of the ‘E’

Most institutional investors now advocate a more responsible model of capitalism and take an enlarged view of the economy and its interactions with civil society and the natural environment.

At Pictet Asset Management, we have been long-term believers that ESG considerations can help us make better long-term investment decisions for our clients. However, we are perhaps best known as pioneers in environmental investing, starting with the launch of our water strategy over two decades ago. In recent years we have widened our environmental offering to encompass strategies dedicated to clean energy, timber and measuring environmental impact.

Creating a better more sustainable model of economics for the planet involves all of us and it requires investment to stay at the cutting edge of environmental technology. This is no easy task, so we place a premium on research collaboration with leading scientific partners. We also embrace our role in highlighting to investors the benefits of environmental investing through Mega, our thought leadership website focused on megatrends.

Find out more below about some of our key research partnerships and our thinking on environmental investing.

Planetary Boundaries Framework

Businesses have a huge role to play in containing global environmental risks. And because they have great leverage on companies, so too do investors.

The Planetary Boundary framework can help investors better understand the environmental cost of economic activity. Specifically, we quantify the environmental impact for every USD1 million of annual revenue businesses generate. Such information, we believe, is a key element in the building of sustainable investment portfolios.

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Planetary boundaries (PB) framework, developed by a team of leading scientists at the Stockholm Resilience Centre (SRC) and in partnership with Pictet Asset Management.


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Global Environmental Opportunities: transforming sustainable investment

We believe that focusing on the environment is a smart way to invest in global equities, and that financial performance and a positive environmental impact go hand-in-hand. Senior Investment Manager Luciano Diana explains how.

After the virus: rescuing economies and the environment

The Covid pandemic could pave the way for action on climate change.

Find out more on Mega, our thought leadership website that focusses on megatrends that power our thematic equities.

 

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Responsible investing

Responsibility is embedded in everything we do, starting with our investment framework. Today, all our active long-only equity and fixed income investment strategies incorporate ESG considerations.

Discover our approach, commitment and responsible investment strategies.

Clearcut #1, Palm Oil Plantation, Borneo, Malaysia, 2016 (detail), photo © Edward Burtynsky, courtesy Flowers Gallery, London / Nicholas Metivier Gallery, Toronto.

Clearcut #1, Palm Oil Plantation, Borneo, Malaysia, 2016 (detail), photo © Edward Burtynsky, courtesy Flowers Gallery, London / Nicholas Metivier Gallery, Toronto.