Less than 1 percent of the global population controls around 50 percent of the world’s wealth. Many wealth owners are aware and mindful of global challenges such as climate change and inequality, and want to move capital toward investments that help realize a more sustainable future starting today.
A central barrier for wealth owners in doing so lies in wealth managers, including private banks.
That is why we started the “Sustainable Investing Capabilities of Private Banks” project together with a panel of experts and wealth owners in the summer of 2017. The goal of the research project is to develop a robust framework to help private investors and banks to understand their sustainable investing capabilities and do better, better.
The initial resulting framework and pilot results from four banks were published in 2017 in the first report Sustainable Finance Capabilities of Private Banks: Introducing the Framework (PDF, 3380 KB).
With the second report (PDF, 4662 KB) published in September 2018, we discussed the results of the application of the framework to 15 private banks in Europe.
The latest report was published in November 2019 and outlined the sustainable investing capabilities of 20 European private banks. In addition to this, the report featured special sections on the impact of the EU Action Plan on Financing Sustainable Growth and private banking and its alignment with international environmental goals.
How to Use the Report
For private investors, this project provides a frame of reference when engaging in discussion with their banks and wealth managers. Furthermore, the report features a questionnaire tool that helps investors understand the relevant sustainable investment capabilities.
For private banks, this project offers an overview of the industry and an opportunity to engage in the question of how to improve sustainable investment offerings specifically for private investors.
Tool: DIY Questionnaire for Private Investors
As a private investor interested in sustainable investing, it can be challenging to find the right bank.
This questionnaire is a spin-off result of the Sustainable Investing Capabilities of Private Banks project. It is an adjusted version of the questionnaire we have used to map out the sustainable investing capabilities of banks. Each question is accompanied with a checklist and a good/bad practice to guide the private investor through the response. Download the tool here (PDF, 937 KB).