19th September 2019
Daniel Pfund, Senior Financial Analyst
More and more pension funds are taking into account “responsible” investment criteria, in addition to purely economic ones. Recognized under the acronym SRI (Socially Responsible Investment), it is the application of the principles of sustainable development to financial investments. There is currently no general method in this application; each has its own definition. For some it is a question of excluding controversial sectors, while others try to make companies aware of the problems by engaging in discussion. At IAM, we integrate the SRI approach into our company assessments by taking into account societal, governmental and economic risks. The higher these risks, the higher the discount rate we apply to value the company.