In Matter we are very often asked of sustainable investments pay off, and whether you need to compromise your financial returns for a sustainable pension.
This is a very relevant question, as a retirement savings is not a place where returns nor costs should be compromised. You need to be able to trust your pension company. Fortunately, the numbers from the past 9 months shows that sustainable pension customers receive better returns than the rest of the market. In other words, sustainability has been paying off in 2019.
The green returns perform well in 2019
Customers with a high-risk profile has from January 1st to December 31st received 26,2%. Likewise, customers with a medium-risk profile also received competitive returns of 16,9%.
These numbers are extracted from a relatively short period of time, and like the rest of the pension market, the sustainable investments can also be volatile. However, the message is still clear: Sustainable investments give better returns, partly due to the huge focus on climate and sustainability in 2019.
“2019 has been a really good for investments. Evidently, the climate consciousness has now reached both consumers, companies and politicians. Numbers indicate that companies producing sustainable solutions will do better than competitors not taking sustainability into account,” says Niels Fibæk, CEO at Matter, and elaborates:
“A lot of the research carried out by Matter shows that the companies with sensible corporate governance and healthy business ethics are less risky investments than for instance the oil companies, which are depending on the historically volatile oil prices. Furthermore, with the increasing number of investment tools, investors now have better possibilities of putting together a sustainable portfolio, that will behave more or less like a traditional investment portfolio,” Says Niels Fibæk.