From Citywire Switzerland's Fund Data Manager article
"EMs vs DMs: Where do wealth managers think ESG is most effective?"
Elio Barzilay from SEC-registered HYPOSWISS Advisors serving US and Canadian clients
Elio Barzilay
Hyposwiss Advisors
When considering ESG investments, the distinction between developed and emerging markets seems a bit artificial, as most of the global companies have operations, supply chains and sales on both sides of the divide. Moreover, even blue-chip companies listed in ‘developed markets’ and deemed ‘sustainable’ do not have 100% ESG-compatible activities, and arbitrages between conflicting objectives need to be performed. International pharmaceutical companies are a telling example.
Although repeatedly recognised as very sustainable by the Dow Jones Sustainability index, they conduct animal testing to develop life-saving treatments.
Other examples include electric car and battery companies, which use metals and rare-earth elements from countries known for government corruption and poor labour conditions.
In this context, the question is not where the company is listed but what the company stands for. Our strategy is to define top ESG goals, openly communicate them to our clients and select the most relevant investments accordingly.
