Belgium/EN Contact My account online 04-10-2021 - CSR A closer look at sustainable and responsible investment SEE ALL NEWS CSR, SRI, ESG: cutting through the jargon As these themes are constantly evolving, investors can find it difficult to plot a course and make informed investment decisions. This is how we define these key concepts. ESG criteria ENVIRONMENTAL Waste management, reduction of greenhouse gas emissions, prevention of environmental risks, etc. SOCIAL Prevention of accidents, employee training, respect for the rights of employees, the supply chain, employee-labour relations, etc. GOVERNANCE Independence of the board of directors, the management structure, the presence of an audit committee, etc. The themes embodied in Corporate Social Responsibility (CSR) and Socially Responsible Investment (SRI) are gaining traction among both institutional and individual investors. A responsible approach The first step for any company is to be aware of its social responsibility. INDR1 (Luxembourg’s national institute for sustainable development) describes CSR as a positive approach to doing business that reflects a company's contribution to sustainable development. CSR is not a fixed set of strictly defined policies and it may cover a variety of areas such as the development of responsible social and environmental policies, active engagement in corporate philanthropy (societal and cultural projects...), etc. Investing with a sustainable vision SRI is characterised by a long-term approach which, according to Eurosif2, combines fundamental analysis and engagement with an evaluation of ESG factors in order to achieve better long-term returns for investors and benefit society by influencing the behaviour of companies. Different management approaches The management of the portfolio may follow various approaches. Although each of these management approaches may be operated independently, they are not exclusive and are often combined within a portfolio. EXCLUSION: generally considered the simplest way to initiate a responsible and sustainable approach. This strategy does not require a proactive role from the manager as it consists of excluding sectors or activities by taking various criteria into account. These criteria may be enshrined in standards (e.g. compliance with international conventions) or linked to ethical and/or faith-based considerations (e.g. the fight against weapons, alcohol, pornography, etc.). ESG: factoring environmental, social and governance criteria into the process of analysing and selecting securities. This may start with a simple desire to reduce the risks linked to these factors (e.g. analysis of controversies and reprehensible company behaviour) to a more advanced ‘best-in-universe’ approach, where only companies with the highest ESG ratings are considered. THEMATIC: these strategies adopt a specific investment theme while taking ESG criteria into account to a greater or lesser extent (e.g. water management, ageing population, etc.) IMPACT: the objective of this type of management is to invest in a project that has a measurable impact on society. The two main tools are green/social bonds, which allow the financing of large public projects (e.g. wind farms), and microfinance, which provides small loans to people with low incomes to start up their own business. TO FIND OUT MORE Issuu cannot be displayed. The cookie is disactivated. ALLOW For more information, please contact in SANDRA GIUNTA Joint Head of the Brussels Private Banking Centre +32 (0) 2 663 45 34 CONTACT ME 29/09/2021 ”Pink October”: Banque de Luxembourg has joined the battle against cancer GUY WAGNER 07/10/2021 First signs of moderation in global economic growth GUY WAGNER 27/10/2021 Equities, the best investment by default Subscribe to the monthly newsletter Receive monthly analyses of the financial markets and news from the Bank. Check out our latest newsletter SIGN UP BUSINESS CSR FINANCIAL MARKETS INVESTMENTS ONLINE BANKING THE BANK WEALTH PLANNING CONTACT Brussels Chaussée de La Hulpe, 120 1000 Brussels +32 (0) 2 663 45 40 MAP Flanders Kortrijksesteenweg 218 9830 Sint-Martens-Latem +32 (0) 9 244 00 40 MAP OUR OTHER WEBSITES Professional Banking Services BLI - Banque de Luxembourg Investments Conventum TPS FOLLOW US FACEBOOKTWITTERINSTAGRAM LINKEDIN YOUTUBE LEGAL INFORMATIONPERSONAL DATA PROTECTIONCOOKIES POLICY© 2021 BANQUE DE LUXEMBOURG, SUCCURSALE DE BELGIQUE By continuing to use our website, you consent to our use of cookies which help to improve your browsing experience and allow us to ensure that the information we share with you is always relevant to your needs. For more information on cookies, see our cookie policy. ACCEPT AND CONTINUE MANAGE MY PERSONAL SETTINGS COOKIE POLICY