How to do a sustainable personal financial planning

Private investors are increasingly considering the sustainability of investments in their financial decision-making. At the same time, climate-related risks are becoming more important (e.g. more extreme summers like this year) than ever before. Following this trend, institutional investors and private banks are offering more sustainable investment solutions accommodating Environmental, Social and Governance (ESG) criteria. Ortec Finance wants to support their clients by enabling private investors to include these sustainable investments in their investment decisions.

An initial idea is to extend our current solutions for goal-based financial planning with sustainable investment solutions and benchmarks, and to integrate sustainability goals, such as the United Nations Sustainable Development Goals, in a comprehensive financial plan. While simultaneously evaluating sustainable and financial goals, a private investor can assess the added value of sustainable investments.  In that case, clients can choose an investment product fitting their personal preferences regarding sustainability themes, such as poverty, gender equality, clean energy and carbon emissions. Finally, the investor can see how much their investment choices contribute towards their sustainability goals.

For institutional investors,  the economic and financial projections of an investors’ portfolio can be already generated by taking climate-related risks and opportunities into account. Future returns of several asset classes may be strongly impacted by different global warming pathways, such as a shift towards a low-carbon economy, an increase in frequency and intensity of extreme weather events, sea level rise, etc. Taking into account the latest developments of climate-integrated economic and financial outlooks, enables investors to be resilient to financial risks related to climate change.