Sustainable Investing - Citi Global Group

Here at Citi Global Group we are always searching for ways to improve our investment performance in order to enhance the service that we offer to our clients, as well as expanding the role that we play within our business community. To that end, we adopt a Sustainable Investing policy which has the aim to continuously create better investing strategies, and set new investment standards that we are then committed to meeting. We use the methodology behind Sustainable Investing policies to calculate more precisely the risk assessment within an investment strategy, in order to provide more rewarding investment opportunities for our clients, and thus generate better long-term risk-adjusted returns for our clients’ portfolios.

Our policy of Sustainable Investing is designed to create a more sustainable economic and investment ecosystem, which will in turn enable our company and our partners to be constantly expanding and improving their business model. This becomes a development trend which guides individuals into building towards a better future for their companies, which in turn helps to create a strong network of like-minded companies with the same potential for long-term growth. We use this methodology to identify companies based on their ability to cope with the severe geopolitical challenges and market fluctuations which invariably affect all businesses, and thus allowing us to offer our clients better risk-adjusted opportunities.

What is ESG?

Environment (E) – This is the umbrella which comprehensively covers all the areas of natural and environmental factors, such as natural resources scarcity and climate risk, pollution and waste, and environment-related investment opportunities.
Social (S) – This factor identifies, investigates, evaluates and reports on such matters as labor or supply chain issues, and health and safety standards, as well as other potential risks, such as product liability, data security, and stakeholder objections.
Governance (G) – This relates to corporate governance and various conduct-related issues, such as anti-competitive practices and corruption, as well as board quality, diversity, and effectiveness, shareholders rights, and executive accountability.

This is at the core of the methodology behind our Sustainable Investing policy, which combines a traditional investment philosophy and strategy, with an Environmental, Social, and Governance (ESG) investment perspective. ESG measures all the different non-financial risks and opportunities inherent to a company’s day to day activities. It can be used effectively by both institutional and individual investors in order to better evaluate a company’s potential for future success and thus reduce risk and improve long-term returns.

ESG (Environment, Social, Governance) is essentially a set of non-financial factors which should be incorporated into any investment strategy. It can be used to further determine a company’s future and strategic direction, in order to identify material risks and growth opportunities in investment opportunities. It’s a modern and very precise tool for data analysis which can be used to design specific sustainable investment solutions, and which many investors and wealth management advisors are now using in their financial evaluation and analysis process.

ESG data and figures are often not disclosed in financial reports since they are part of “non-accounting” information, and also due to the fact that they consider often intangible assets. However, these factors are ones which are having an increasing influence on business valuations, since they incorporate vital aspects of company’s infrastructure and sector position, namely brand value and reputation, and the decision-making of key personnel in corporate management which directly affects operational efficiency.

How ESG is being adopted in the investment sector

There are various factors which are integral to any Sustainable Investing policy, and there a number of ways in which the methodology can be utilized by a financial advisor or an investor. Each individual will have a different understanding of this field, and the way that they integrate ESG elements into their investment strategy can vary from person to person. However, it is now established that the number of investors who are adopting this methodology as a part of their overall investment strategy is growing, for various reasons:

The market volatility and economic uncertainty of recent years has led to investors becoming more demanding in their prerequisites when looking for comprehensive and sound investment opportunities, and will therefore include sustainable investment solutions wherever possible.
Global financial regulators and governmental bodies also understand the importance of integrating Sustainable Investing elements in their decision-making, and they accept that the information that ESG factors provide is often key to the likely success of projects they undertake.
Both institutional and independent investors, as well as financial regulators and governmental bodies, agree that Sustainable Investing research and analysis are vital in identifying potential hidden risks in investment opportunities, and help to guarantee bigger returns.

What we offer

Here at Citi Global Group, we understand that our clients all have different life goals, financial objectives, and risk tolerance, which combine together to make up their investment strategies. While we use these factors to guide us in offering the most appropriate advice to our clients in terms of the right investment opportunities for them, we also integrate a wide variety of Sustainable Investing solutions in our evaluations in order to provide our clients with a more comprehensive understanding and overview of each opportunity. We use the ESG methodology to reduce the risk of any unforeseen factors minimizing the potential for reward.

We offer both Risk Aggressive and Risk Avoidance strategies:

Risk Aggressive Strategy: This focuses on industry sectors and individual companies with positive ESG performance metrics, or at the very least better than their sector market competitors.

Risk Avoidance Strategy: This focuses on avoiding industry sectors and individual companies with negative ESG characteristics which may affect a company’s reputation and value.

Please contact us for a free consultation with one of our Financial Advisors