Eurosif Report 2021

27 October 2021

The Eurosif team, its sponsors DWS, Universal Investment, ISS ESG, LGT and BNP AM as well as the member SIFs are pleased to present the latest Eurosif Report entitled Fostering Investor Impact – Placing it at the heart of sustainable finance. 

Despite a stellar growth of sustainable and responsible investments (SRI) and sustainability related initiatives in the last few years, science is telling us that the State of the Earth is deteriorating (Chapter 1). Hence, investors and policymakers must ensure the effectiveness of current and future SRI strategies and regulations to achieve positive outcomes in the real world. Investors can address the sustainability challenges of the biosphere only through the companies they invest in, by using three levers:

  1. i) shareholder engagement;
  2. ii) focusing on how to fund ventures, companies and underfunded projects that are key for the transition;
  3. iii) and sending market signals to companies.

After having analysed strengths and limitations of each mechanism (Chapter 2), and having conducted a thorough analysis of the current EU sustainable finance agenda (Chapter 3), Eurosif put forward several recommendations which are spelled out in more details in Chapter 4.