As the world continues to become even more aware of issues that are negatively affecting Mother Earth, there is a continuously growing clamor for practices that are green and sustainable. We are starting to see this in many aspects of our daily life, from the growing popularity of electric cars, to the shift to plant-based diets as seen in many parts of the globe, to policies that aim to curb our use of depleting natural resources and control how we manage waste.
Like many other companies and corporations that have begun to shift their methods and rethink the impacts of their business practices, UnionBank Private Banking believes that sustainability is a “must-have” and not just something that is “nice-to-have”.
“If we see the pace at which regulation, for instance, is intensifying, we see very rapid developments occurring. As of last year, for instance, only 16 percent of the world’s economy had a net-zero target. Today, if we look at governments around the world and their pledges, 80 percent of the world now has some net-zero commitments,” said Senior Sustainability Analyst for Lombard Odier Group, Dr. Thomas Hohne-Sparborth, during his presentation at the recently concluded virtual event “E-conoMix: Shaping the Future with Sustainable Investing,” which was conducted by UnionBank Private Banking in strategic alliance with Lombard Odier. In case you missed it, you may visit tinyurl.com/Economix-Sustainability to watch the replay of the recently concluded E-conoMix webinar.
He added that the ongoing shift to a more sustainable economy, as seen in policy and regulation across the world, is also becoming more apparent in terms of market forces and consumer demand, as well as in terms of investor activity globally.
Investors across the Asian region particularly are now seeing the value of adopting investment strategies towards a more sustainable economy. According to the whitepaper “Connection, Transition, Transformation: Engaging Asia’s UHNWI in the New Normal” published in early 2021 by Lombard Odier, UnionBank Private Banking, and Lombard Odier’s other strategic alliances in the region, 89 percent of respondents believe that the sustainability trend is here to stay, and 61 percent said that they take sustainability into consideration when making investment decisions. This positive view, however, was not shared with some respondents, who shared their views that sustainability may perhaps not generate superior returns.
“It is not an easy decision to make, and so, a lot of investors are still on the sidelines. A common fear is that sustainable investing can lead to lower returns. I think this fear is unfounded. And even if it does, it can be managed depending on one’s objectives,” said UnionBank SEVP & Chief Finance Officer Toto Hilado, who was also a panelist in the E-conoMix event. “We believe that investors would benefit in one way or another from this new framework. It does not have to be an all-or-nothing approach.”
“With regard to ESG [Environmental, Social, and Governance] and sustainable investing, we believe markets significantly underappreciate the expansive changes forthcoming. The integration of ESG and focused strategies are growing fast, and for good reason,” said UnionBank’s newly-appointed Chief Investment Officer (CIO) Julian “Jun” Tarrobago, who was also one of the E-conoMix event speakers. “There is mounting evidence in the ability of sustainable investing or ESG integrated or focused strategies’ abilities to reduce cost of capital and support long-term appreciation of shareholder value.”
As a bank that believes in the power of sustainable investing to deliver positive long-term benefits not only on one’s portfolio, but more importantly, on society and the environment in general, UnionBank through its Private Banking Group aims to help investors find opportunities to grow and preserve their wealth in ways that are socially and environmentally conscious.
Leveraging on its long-term strategic alliance with Lombard Odier, one of the world’s oldest private banking institutions, UnionBank Private Banking is committed to empowering clients to make better investment decisions especially when it comes to sustainable investing. Led by CIO Jun Tarrobago, UnionBank is in the process of re-evaluating internal investment processes and identifying gaps and opportunities to implement a more sustainable way of investing.
UnionBank Private Banking intends to continue shedding light on sustainability and sustainable investments through thought-leadership discussions and webinars. On September 16, Lombard Odier, in collaboration with UnionBank Private Banking and its other strategic alliances in the region, will be holding its Signature event, this time on sustainability, with former Secretary-General of the United Nations, Ban Ki-moon, as keynote speaker.
To learn more about the how UnionBank Private Banking can help you, you may contact ubprivatebanking@unionbankph.com. For more information, visit www.unionbankph.com/private-banking.
