Current asset prices attractive for investment.Byline: Costs have been pulled down by half while business environment remains healthy. Dubai: The decline in asset prices across the world have made valuations of sustainable investment opportunities both in publicly listed asset classes and private equity arena very attractive across the world, said Andreas Knorzer, managing director and head of sustainable investment at Bank Sarasin. "The prices have come down by more than half while the business environment remains robust for these companies. In the short-run, like other sectors, these companies too are likely to face funding difficulties. But in the medium to long term they make sound investment sense both in terms of returns and social responsibility," said Knorzer. Bank Sarasin, one of Continental Europe's leaders in sustainable investments has about 3.7 billion euros (Dh17.91 billion) worth assets under its management under Sarasin Sustainable Investment. Although oil prices have come down by more than 70 per cent from their July, Knorzer believes that it makes ample businesses sense for Gulf governments and private sector to invest in sustainable renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. projects as they will supplement the non-renewable resources A non-renewable resource is a natural resource that cannot be re-made, re-grown or regenerated on a scale comparative to its consumption. It exists in a fixed amount that is being renewed or is used up faster than it can be made by nature. and give the region access to new technologies. "The gains may not be immediate. But clearly the region stands to gain from new technologies that could stand as a buffer when the energy prices are high," he said. In terms of return on investment, Knorzer thinks there isn't any compromise in socially responsible investing Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, . It's a myth that socially responsible investments must underperform Underperform An analyst recommendation that means a stock is expected to do slightly worse than the market return. Also known as market underperform, moderate sell, or weak hold. ," he said. Contrary to a widely held view, that socially responsible investment strategies outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market. Our experience shows that these investments deliver higher returns and are less risky in the long term. The investments in companies with high environmental and social standards can actually make financial sense. [c] Al Nisr Publishing Al Nisr Publishing is a company based in Dubai, UAE. The company is a part of Al Tayer Group. It was established in 1985 by Obaid Humaid Al Tayer, Abdullah Al Rostamani and Juma Al Majid. It employs 1,050 people and has branches in Manilla, Bahrain, Abu Dhabi and Sharjah. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control 2007. All rights reserved. Provided by Syndigate.info an Albawaba.com company |
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