January 22, 2022

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You can also make money by taking responsibility

You can also make money by taking responsibility

The planet is turning red and the climate crisis is no longer a warning finger, but, on the contrary, an imminent reality. Currently, companies from all over the world are starting to deal with the current phenomenon, which is called ESG. These are the first letters of the words “environmental”, followed by the word “social”, then “social”, abbreviated as the English term “governance”, which in translation means “governance”.

Companies with high scores in ESG are proud Responsible approach To protect the environment and support the arts and education as well as for their employees and business partners and don’t forget about quality management in the company. These are sustainable companies, the number of which is constantly growing in the world. One of them is Tatra banka, who has been active in the field of social responsibility for years and also deals extensively with environmental issues.

You can also make money by taking responsibility

Source: Tatra Banka

Tomáš Kvašňovský, Director of Sustainability

Think sustainably

In its activities, the Bank favors innovations that lead to sustainability. It has an important place in decision-making processes. Often these are primarily digital innovations that take the burden off the environment. Tomáš Kvašňovský, who works at the bank in the position of Director of Sustainability, provided several examples in which the company is helping the planet to recover and move forward. “We no longer print information brochures about our products and services in our branches.

Instead, by simply scanning a QR code, our customers can download it to their mobile phone and have it available at any time. At branches of Tatra banka and Raiffeisen banka and also in our offices we use only recycled paper. We also launched ATM 2.0, which has a deposit and withdrawal function, which is called cash recycling and thus contributes to reducing cash flow with positive impact on carbon footprint.” According to him, they want to reduce this also within the bank by means of a project to move employees from three buildings to One central building.” This will significantly reduce resource use and improve the impact on the environment.

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We are also calculating the bank’s carbon footprint so that we have a clear view of how our activities affect the environment and where we can improve our efforts in the future to achieve carbon neutrality.” Among the environmental products, he highlighted the €300 million green bond, and the bank’s withdrawal from project financing using fossil fuels. Support for green real estate, as well as preferential leasing of electric cars.

The future is in responsible investing

The popularity of socially responsible investing cannot be ignored. According to Martin Smirk, Head of Product Management at Tatra Asset Management, this trend is mainly related to changes in people’s behavior and preferences. “There are more and more people who are no longer interested only in the quality and price of the product, but also in the company that produced the product. In their eyes, this company must be responsible, transparent and ethical in its business, must promote human rights and meet strict environmental standards. Companies have also begun You realize that businesses like this have better prospects for long-term success and growth,” Smirk explained.

According to him, a responsible approach to business has not escaped even from the field of investment, and up to two trillion US dollars have been invested in this way all over the world. The difference between traditional investing and environmental and social investment (ESG) is not much in return, because achieving it is also the main goal of responsible investing. However, the difference lies in the manner in which it will be achieved. “This type of investment is investing in the right companies that make a significant contribution to social development, act transparently and ethically, advance human rights or meet stringent environmental standards,” Smrick said. According to him, Slovaks are still looking for a way to make responsible investments. However, according to him, the good news is that the Slovak consumer has also begun to listen more and more to the topic of social responsibility. “Take for example waste separation. 20 years ago, few people did it in our country, and today such behavior is quite normal. Therefore, it may be natural that there are more and more socially responsible investors in our country.”

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František Burda, investment analyst at Fingo.sk, is also aware of the fact that humanity has destroyed the environment. “It is time for companies that pollute the environment to change the technological production process,” he explained. According to him, ESG topics are becoming more and more popular in Slovakia, mainly because people understand the importance of being mindful of the planet. “We loot it whatever the consequences, and we feel it, for example, in global warming. That’s why I think investing in ESG funds is really the future. People reject dirty companies and don’t want to contribute to their success. We need sustainable, green and socially responsible companies.” It is concerned with sustainability and ethics and considers the economic and social impacts of its activities.”

It has to start somewhere

When investing, it is important to realize first of all that when making any investment it is important to consider the number of unknowns. This is not the case with ESG investments either. Today, large domestic banking houses also have social responsibilities in their offerings funds. For example, Tatra banka has introduced Blue Planet Funds, which invest in stocks and bonds in accordance with environmental, social and ethical criteria. “The Blue Planet Funds product range is broad enough to satisfy every client interested in valuing their money while at the same time participating in the right activities that contribute to social development,” Smirk explained.

However, we should not forget that investments in ESG funds have the same risk-return relationship as traditional funds. “Here, too, we can find conservative, balanced and dynamic funds. It all depends on the strategy of the specific fund and the number of bonds, shares or other securities that it holds in its portfolio, ”explained Borda of Fingo.sk. However, according to him, the more shares in a particular fund, the higher the risk of the fund (its value may fluctuate more), but on the other hand, let’s not forget about the fact that the higher the expectations on the return side.

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There are also risks associated with investing in a mutual fund, and past performance is no guarantee of future performance. The platform, sales prospectus and basic information for mutual fund investors are available on Tatra banka, as branches in the Slovak language.