Stepping beyond the niche : unlocking the potential of Swiss impact investments
SONAR|HES-SO
- Ajvazi, Jasmina
- Khan, Aftab (Degree supervisor)
- Genève : Haute école de gestion de Genève
74 p.
Bachelor of Sciences HES in International Business Management: Haute école de gestion de Genève, 2023
English
Interest in impact investing is gaining momentum, as it increasingly becomes an essential element of sustainable development cooperation. Yet in Switzerland, impact investing is still a relatively small part of the overall investment landscape, accounting for only 1.3% of investments under management in 2019. While their current market share is low, the sector is growing significantly, having tripled in 2020 compared to the previous year. This trend reflects the growing recognition of the potential that impact investing has, as well as its increasing appeal to investors seeking to align financial returns with measurable positive social and environmental outcomes.
This study explores the limited uptake of impact investing in Switzerland and proposes strategies to foster its wider acceptance. The research highlights the challenges and opportunities associated with impact investing, as well as the risks associated to those investments. The findings reveal several barriers to the expansion of impact investing in Switzerland. Limited awareness among investors, coupled with risk aversion, are amongst the factors that inhibit its adoption. Greenwashing practices and illiquidity further impede growth. Concerns regarding potential low risk-adjusted returns create a perception of a trade-off between financial gains and impact achievement, limiting investor enthusiasm.
However, there are opportunities for the expansion of impact investing. Establishing a supportive regulatory environment and standardised measurement practices can enhance transparency and credibility. The transfer of wealth to younger generations, who prioritise sustainability, presents a driver for expansion as their influence in investment decision-making grows. The motivations of investors also play a significant role in driving adoption, with many seeking to align their financial activities with their values and contribute to positive social and environmental outcomes. Promoting impact investing effectively requires showcasing successful examples, delivering financial returns alongside measurable social or environmental outcomes. Moreover, increasing awareness across sectors, including academia and financial institutions, can dispel misconceptions and attract more individuals and organisations. Addressing these factors can pave the way for wider adoption and mainstreaming of impact investing in Switzerland, contributing to sustainable development goals and fostering a more equitable and environmentally conscious global society.
This study explores the limited uptake of impact investing in Switzerland and proposes strategies to foster its wider acceptance. The research highlights the challenges and opportunities associated with impact investing, as well as the risks associated to those investments. The findings reveal several barriers to the expansion of impact investing in Switzerland. Limited awareness among investors, coupled with risk aversion, are amongst the factors that inhibit its adoption. Greenwashing practices and illiquidity further impede growth. Concerns regarding potential low risk-adjusted returns create a perception of a trade-off between financial gains and impact achievement, limiting investor enthusiasm.
However, there are opportunities for the expansion of impact investing. Establishing a supportive regulatory environment and standardised measurement practices can enhance transparency and credibility. The transfer of wealth to younger generations, who prioritise sustainability, presents a driver for expansion as their influence in investment decision-making grows. The motivations of investors also play a significant role in driving adoption, with many seeking to align their financial activities with their values and contribute to positive social and environmental outcomes. Promoting impact investing effectively requires showcasing successful examples, delivering financial returns alongside measurable social or environmental outcomes. Moreover, increasing awareness across sectors, including academia and financial institutions, can dispel misconceptions and attract more individuals and organisations. Addressing these factors can pave the way for wider adoption and mainstreaming of impact investing in Switzerland, contributing to sustainable development goals and fostering a more equitable and environmentally conscious global society.
- Language
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- English
- Classification
- Economics
- Notes
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- Haute école de gestion Genève
- International Business Management
- hesso:hegge
- Persistent URL
- https://sonar.rero.ch/global/documents/327639
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