1) The document discusses how fintechs could help address ESG challenges and simplify investment decisions for retail investors. It notes growing demand from investors for sustainable investing options and tools to define their ESG preferences.
2) Lack of knowledge is a major hurdle to ESG investing. The document presents a solution called SAFIR that provides a personalized portfolio diagnostic to encourage investing and simplify decisions for retail clients in a way that is aligned with their risk appetite and sustainable preferences.
3) SAFIR uses modular tools including investor profiling, portfolio assessment, and continuous monitoring to help financial institutions better serve investors and meet regulations like the EU's ESG directives in a client-centric manner.
3. Introduction
Several forces are driving the growth of responsible investment
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“Global ESG assets may
surpass $41 trillion by
2022 and $50 trillion by
2025, one-third of the
projected total assets
under management
globally”.
Source: Bloomberg Intelligence (BI)
4. 4
Sustainable finance survey (05/2022): the CSSF, ABBL & LSFI have launched a survey to assess knowledge and understanding of retail investors on sustainable finance.
Outcomes show that a significant part of the investors want to define ESG preferences if they invest, trust their banks to support them and require access to more information on
sustainable finance
Key findings
Client Demand
The shift to sustainable investing is driven by demand from the bottom up
5. 5
Sustainable finance survey (05/2022): the CSSF, ABBL & LSFI* have launched a survey to
assess knowledge and understanding of retail investors on sustainable finance.
Outcomes show that a significant part of the investors want to define ESG preferences if
they invest, trust their banks to support them and require access to more information
on sustainable finance
The importance of education
Lack of knowledge and expertise as the greatest hurdle to ESG investing
Nordea AM ESG survey (2021): The Nordea ESG Survey 2021 gathered the views of 1,200
European individual investors on ESG and sustainable investing via an online survey
conducted by CoreData Research between July and August 2021. Participants are
classified into 4 different generations: Gen Z (age: 18-24), Millennials (25-40), Gen X (41-
56), and Baby Boomers (57-75). They are also split into ESG users (currently investing in
ESG, 43%) and ESG non-users (currently not investing in ESG, 57%)c
12. 1. ESG investors are hungry for more
2. Education and advisors play a crucial role in financing the transition to
a sustainable economy
3. Different levers exist to support financial institutions : support from
national (and EU) authorities, local association and collaboration with
Fintech
Conclusion
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