- Emphasis on sectors that are promoted by the leading global economies, including green and smart transportation, renewable energy, development of a circular economy, upgrading of buildings, etc.
- Focus on companies operating in the fields of energy storage, energy savings and minimizing the environmental pollution footprint.
- Focus on investment in innovative sectors, including autonomous vehicles, AI, 5G cellular, environmental technologies, smart agriculture, new solutions for food, water, waste, etc.
- Companies that make a positive contribution to the future job market, new economy, and active incorporation of people currently excluded from properly compensated work.
Join the biggest trend in the investment world, investment in quality companies that are also about doing good. Financing that grows from year to year, lower fluctuation in the investment portfolio, transparency that relates to the conduct of the company, entry of trillions of dollars into the field as well as a positive impact on the world are only some of the advantages integral to ESG, which is continually growing in the global asset portfolio.
Over the past two years, there has been a 42% increase in capital invested in companies with a high ESG rating, and today, 1 in 3 US dollars is allocated to investments with a responsible rating (US SIF, November 2020).
What is the ESG Index?
An index that rates the activity of companies in three areas: social, criteria that examine how a company conducts itself with employees, suppliers, customers and additional stakeholders; environmental, criteria that examine the impact of the company’s activity on the environment; and corporate governance, criteria that examine all the processes, traditions, policies, laws, institutions and control structures according to which a corporation or organization conducts itself and is controlled.
The rating is done using dozens of criteria that enable quantification, measurement and comparison of the activity of various companies in the same industry and across different industries. The rating, measurement and comparison provide tools for effective screening of the quality of management in potential investments and assessment of specific and unique risks, if any.
SDG – investments that promote social and financial goals
The United Nations defined 17 sustainable development goals that were adopted by governments, companies and international organizations as social and environmental targets that will be required in the coming years and were approved by the UN. From ending poverty to environmental protection, gender equality, decent work, clean water, waste treatment and more (official UN website, April 2021).
Green Deal – promoting green economy worldwide
The world’s leading countries such as the US, China and many European countries are working hard to promote the economic value inherent in the UN’s development goals. COVID-19 accelerated investment plans in a variety of fields, including expanding the use of renewable energy, green and smart transportation, upgrading and development of water systems, smart and economical infrastructures, development of a circular economy and additional projects with a socio-economic impact.
Decision making in the IBI ESG portfolio and manner of investment
To facilitate ongoing follow-up, make investment decisions and reporting, IBI Portfolio Management uses the rating and international analysis platform of companies with global expertise in these fields and others, including Israeli company Greeneye.
Do good for the world and profit too
For an article on Bizportal with Elah Alkalay, May 30, 2020 > The Risk Currently Outweighs the Odds > Here
For Elah Alkalay’s column in Globes, October 18, 2019 > Higher Profits Cannot Be the Only Objective of a Commercial Company > Here
For Elah Alkalay’s article in Globes, June 18, 2019 > Responsibility and Impact > Here
For an article on Bizportal with Elah Alkalay > Beyond the Financial Statements: the Index that Reveals What Really Motivates Companies, January 31, 2019 > Here
For an article in Globes > Thinking about Long-Term Profit: The Added Value of Impact Investments, 18.12.18 > Here
For Lior Uzan’s article in Globes > Responsible Investments and Their Contribution to the Performance of Stocks and Companies, January 15, 2017 > Here
For an article in Globes with Elah Alkalay > Responsible Investments with Pension Savings, December 19, 2017 > Here
To an article in Globes with Elah Alkalay > Not Only Is There an Elephant in the Room, It’s Black. How Is the Capital Market Dealing with It? January 8, 2019 > Here