For Reto Ringger, CEO of Globalance Bank, a 50-page document will certainly contain more information but it is less readable because most investors do not read them.
The conference marking the 10e anniversary of Swiss Sustainable Finance (SSF) brought together recognized representatives of the Swiss authorities and the financial sector as well as various experts in sustainable investments on Thursday in Bern. How has sustainable finance evolved over the last ten years in Switzerland? Allnews.ch spoke with Reto Ringger, director and founder of Globalance Bank, a banking establishment specializing in sustainable investments based in Zurich and who also co-founded SAM Group in 1995, the first service provider in the world to focus on this theme. Interview.
At Globalance Bank, the investments made are sustainable in any case. What are the criteria that your customers look at as a priority: performance; having detailed reporting; the approaches used in selecting sustainable investments?
Our ambition is to build portfolios that generate returns in line with the market while having a positive footprint. This is a proactive approach, where we select companies that benefit from growth themes around decarbonization, new technologies, urbanization, new mobility, etc. We believe that the transformation towards a sustainable economy will bring big changes and will create winners and losers.
“If we look at regulatory efforts in Europe, the flow of information will further increase and it will be even more difficult for investors to navigate this jungle of information.”
During a panel discussion, you said that customers want more “simplicity” – not having to read 50 more pages or slides. Is this not contradictory with the requirements of the regulatory authorities which move in the direction of more “transparency”, which precisely requires ever more reporting?
From our point of view, there is no contradiction between these two aspects. On the contrary: simplicity requires transparency and also a certain standardization. As with most important topics in the economy or in life, however, the relevant indicators can be summarized in a few pages. If all this is presented on 50 pages, we will certainly have more information, but less transparency in terms of readability, because most investors do not read 50 pages. In this sense, less is more.
What development do you expect in this regard?
If we look at regulatory efforts in Europe, the flow of information will further increase and it will be even more difficult for investors to navigate this jungle of information.
“According to various surveys carried out in Switzerland, 50 to 60% of investors want to make sustainable investments.”
What conclusions do you draw from the Swiss Climate Score? Is it a simple enough tool – is it useful?
This is a good start and Globalance was the first bank in Switzerland to implement the Swiss Climate Scores. This is a good first step, although of course we need further development. However, it turns out that providers also need time to meet the requirements.
You and Globalance are among the pioneers in the field of sustainable investments in Switzerland. In which areas do you anticipate the main developments in 5 or 10 years in terms of sustainable investments in Switzerland?
The complexity of offers will continue to increase over the coming years. The flow of data and regulatory requirements will also continue to increase. On the other hand, innovation will also increase and new smart solutions will compete in the market. According to various surveys carried out in Switzerland, 50 to 60% of investors want to make sustainable investments. The demand side will therefore positively influence the supply side and I am optimistic that our sector will have taken a big step forward in five years.
