In the storm… Let’s stay the course for a sustainable world

In recent years, we have been fortunate to witness a growing interest in sustainable finance. The number of “ESG¹” or “sustainable” funds has increased significantly. At the same time, regulations were introduced and commitments to decarbonization multiplied. It was an exciting time and it felt like we were moving decisively in the right direction. 

But the political context is shifting, as is the tone of the debate. On the other hand, let’s not get defensive. On the contrary! Let’s live up to our deepest convictions and be even stronger.  

For the reality has not changed. The scientific consensus remains crystal clear: the planet has limits, and we are exceeding them every year. The way we produce and consume is leading us straight into a brick wall and creating serious social inequalities. The economy must transform itself, and finance has a crucial role to play. To do this, it must stop investing in what does more harm and favour companies, industries and approaches that offer sound solutions to today’s challenges.  

The economy must and will change to meet people’s needs while respecting the planet’s limits. And the longer we wait, the more radical the change will have to be.

The long-term decisions that pay off remain the same. The companies that offer products and services that contribute to this positive transformation today will be the champions of tomorrow… and are therefore likely to generate the best financial returns, in addition to their positive environmental and social impacts! 

Sustainable finance is not a fad: it’s the finance of the future.  

The “everyone for themselves” trap

Yes, we have entered a difficult period, both economically and commercially. When the economy is in turmoil, uncertainty prevails and an “everyone for themselves” attitude becomes commonplace, and environmental and social concerns suddenly seem to take a back seat or are sidelined. The financial sector, like others, is affected by the political and economic environment and reacts to the signals it receives, whether real or perceived. And these are challenging times. From the rollback of certain regulations to the return of reflexes from a bygone era, not to mention unfounded claims about the relevance of ESG criteria and the revival of a short-term vision, sustainable finance is clearly facing headwinds.

Are these signals cause for concern? Certainly they are.

Should we be changing course? Absolutely not.  

It’s easy to get involved in sustainable finance when everyone is enthusiastic about it. But it’s even more important to take action when it’s less popular.

For while markets respond to signals, the impacts of social and environmental crises are more real than ever and will worsen, especially if we abandon the efforts already underway. Indeed, we have recently seen a resurgence of old ways of doing things. But it’s a mistake to go down this contraflow lane. 

When sailing in a storm, it’s important to distinguish between the surf and the undertow. Even more so when it comes to our investments and retirement savings.

You—and your savings—have more power than you think

We can make a difference as savers. Together we have more power than we think. If buying is voting, then saving is transforming. Finance is a powerful lever we can use to create a more sustainable world by combining our strengths.

We believe in collective power and work every day to develop an approach that counters the “survival of the fittest” and “everyone for themselves” reflexes that are trying to make a comeback. 

When our children or grandchildren ask us what we did to address the climate and social crises, we want to be able to look them in the eye and tell them that we kept our guard up and remained on course, through thick and thin. Because it was the right thing to do. For them. For us. For the planet.

Now, more than ever, we need to take stock of our strength. Now is not the time for discouragement, but for commitment. United and stronger, let’s stay the course.

Thank you for standing with us.

“Individually we are but drops of water. Together we are an ocean.”

– Ryunosuke Satoro

1. environmental, social, and governance (ESG)

Note : There are ongoing fees and expenses associated with owning investment fund securities. Fondaction’s shares are not guaranteed. The value and performance of this investment fluctuate; past performance is not an indicator of future results. Before investing, please consult the prospectus at fondaction.com/prospectus.