“This supersedes political parties, race, creed, religion, it doesn’t matter. If we do not solve the environment, we’re all damned.”

Elon Musk, CEO of Tesla and SpaceX.

At Privos Capital, we understand the transformative impact that sustainable investing is having on the financial landscape. While the adoption of sustainability principles has surged in recent years, many global family offices have long recognized the inherent value and potential of sustainable investments.

Our dedication to sustainable investing is based on the belief that these investments not only reflect ethical values but also yield strong financial returns. As the industry evolves, we are witnessing a broad integration of environmental, social, and governance (ESG) factors into investment strategies, marking a significant shift in wealth management practices.

Recent studies by Morgan Stanley and Bloomberg confirm that sustainable investing has moved beyond niche markets and has become a mainstream approach embraced by a wide range of investors. Asset managers, private equity firms, and hedge funds are increasingly adopting sustainable investment strategies in response to growing demand. This trend highlights the understanding that robust ESG practices can contribute to enhanced profitability.

The expanding availability of ESG-focused investment vehicles provides investors with a diverse array of options across different product types and asset classes. From mutual funds to alternatives and exchange-traded funds (ETFs), the landscape of sustainable investing is broadening to meet varied investor preferences.

We champion active engagement with ESG issues as a core component of our stewardship program. We consider a comprehensive range of ESG factors that influence economic interests, including governance, board succession planning, leadership, and operational excellence.

Promoting gender diversity is also central to our investment approach. Research consistently shows that gender diversity in leadership correlates with stronger financial performance. We are committed to advancing gender equality within our own organization and encourage family offices to prioritize gender diversity in their asset and wealth management decisions.

Our commitment extends to supporting the United Nations Sustainable Development Goals (SDGs) through our investment strategies. The SDGs offer a robust framework for addressing global challenges and promoting sustainable development.

As strong proponents of sustainable investing, we align with the United Nations-supported Principles for Responsible Investment (UNPRI). Our engagement includes active participation in leading global ESG, socially responsible investing (SRI), and SDG-focused investor conferences.

At Privos Capital, we believe that sustainable investing represents more than just a trend—it is a fundamental change in the way investments are managed. By integrating ESG considerations into our investment decisions, we strive to achieve both positive social impact and strong financial returns for our clients. We invite family offices to join us in embracing sustainable investing principles and contributing to a more sustainable future for generations to come.

We align our values with leading global frameworks and standards that measure impact and sustainable investments, including:

1. Sustainable Development Goals (SDGs): Established by the United Nations, the 17 SDGs provide a universal set of goals to address global challenges, including poverty, inequality, climate change, and environmental degradation. Investments can be aligned with these goals to measure their impact on sustainability.

2. United Nations Principles for Responsible Investment (UNPRI): A set of principles that provide a framework for incorporating ESG factors into investment decisions. The UNPRI encourages investors to adopt sustainable investment practices and report on their activities and progress.

3. Global Reporting Initiative (GRI): GRI provides guidelines for businesses and organizations to report on their sustainability performance, covering economic, environmental, and social impacts. It is one of the most widely used frameworks for sustainability reporting.

4. Task Force on Climate-related Financial Disclosures (TCFD): The TCFD framework helps organizations disclose information on their climate-related risks and opportunities. It is designed to improve and increase reporting of climate-related financial information.

5. Impact Management Project (IMP): The IMP is a forum for building global consensus on how to measure, manage, and report on impact. It provides a framework to assess the impact of investments across various dimensions, such as the type of impact, who it affects, and the scale of impact.

6. Social Return on Investment (SROI): SROI is a methodology for measuring and accounting for the value created by social, environmental, and economic outcomes. It helps organizations understand and quantify the social value of their investments.

7. B Impact Assessment (BIA): Used by B Corporations, this assessment measures a company’s impact on its workers, community, environment, and customers. Companies that score highly on the BIA may qualify for B Corp certification, indicating strong performance in social and environmental responsibility.

8. Global Impact Investing Network (GIIN) IRIS+: IRIS+ is a system for measuring, managing, and optimizing impact. It provides a catalog of metrics that investors can use to assess the social, environmental, and financial performance of their investments.

9. Equator Principles: A risk management framework adopted by financial institutions for determining, assessing, and managing environmental and social risk in projects. The Equator Principles apply globally to all industry sectors.

10. Carbon Disclosure Project (CDP): The CDP runs a global disclosure system for companies, cities, states, and regions to manage their environmental impacts. It focuses on the disclosure of greenhouse gas emissions, water use, and climate change risks.

These frameworks and standards are essential for our firm to to measure and improve the impact and sustainability of our investments and opportunities. They help ensure that investments contribute positively to society and the environment while also being financially viable.