Private Banking Switzerland The Quest for Responsible Investments: Opportunities and Challenges in Combining Financial and Social Objectives Patrick Elmer, Head Responsible Investment and Philanthropy ServicesDisclaimer Switzerland: This product can only be offered to qualified investors according to art. 10 para. 3 CISA. This material is personalto each offeree and may only be used by those persons to whom it has been handed out.
mission-driven investment sustainable investment value-based investment Risk social investment responsible investment ESG investment Return Liquidity impact investmentdouble-bottom line investment
But the notion of ‘Return’ is evolvingFinancial return Extra-financial considerations
Credit Suisse ApproachAdvising clients to combine various objectives Responsible Investment and Philanthropy Services Microfinance and Impact Philanthropy Services Sustainable Investments Investments Client Objectives Client Objectives Client Objectives Social/environmental change Social/environmental change, Maximized risk-adjusted through charitable donation and combined with financial return financial return via ESG active support screening and sustainability trends Social Return Financial Return * Environment, Social and Governance screening
Innovative solutions to link the TOP with the Base 10 m illion TOP people ≥ $1m in financial assets Link 4500 m illion BASE people < $4 a day / PPP
Over 3’600 clients investing 1.6 billion for impact16001500 Across 15 investment funds USD 1584m14001300120011001000 900 800 700 600 500 400 300 200 100 0 Jun 08 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 June 11 Dec 11 Jun-12 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Mar-12 Dec-10 Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Jun 06 Jun 07 Jun 09 Jun 10 Data: Credit Suisse, June 2012
Reasons to invest Social impact 63% Diversification 26% Financial return 11%Source: Credit Suisse internal survey, 2010