Sustainability-related investments have faced a challenging environment over the past year. The negative market performance of 2022 hit sustainable investors just as much as their mainstream peers. Furthermore, many banks and asset managers chose to take a more conservative approach in reporting their sustainable offerings in order to manage greenwashing risks and rising regulatory complexity attributable to the absence of commonly agreed definitions. As a result of these and other factors, volumes saw a decline in 2022. Does this mean sustainable investments are in crisis? Absolutely not. Instead, we see these developments as a natural step in the evolution towards the mainstreaming of sustainability-related investments.
Swiss Sustainable Finance