UPM-Biofore-Magazine-3-2016-EN

“UPM enjoys a strong presence among investors who are integrating sustainability in their investment decisions compared to other industrial and materials companies,” says Nina Norjama.

PULP FOR LIFE

Nina Norjama

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the market will be very responsive to investment opportunities, as with the Asianmarket. In the US it’s always a case of putting forward a clear investment proposition.” New post-crisis landscape Fabian says that investors have been looking at the world from a different perspective since the financial crisis of 2008. “They now understand that looking at financial information in isolation does not give you a full picture of how stable a company is. They are also looking at how companies deal with issues such as transitioning to a low-carbon environment, and how they treat their employees is equally important.” Investors are moving on to new opportunities, especially those concerning the environment, because these markets are receiving more government and policy support. “For example, there are excellent opportunities for investors in projects such as renewable energy and green transport. Projects like these will grow very rapidly worldwide,” he predicts. “These markets are well beyond their early phases and there are good and solid investment prospects out there. Investors have to move quickly to take advantage of those opportunities, and that is a promising development.” 

governments have changed their strategies to design policies that favour sustainable investment. “I think the change reflects a wider view among policymakers, companies and investors that sustainability or ESG issues are material from a financial perspective. Investors should therefore be assessing them and ultimately directing more capital into emerging opportunities like biofuels,” says Fabian. According to Fabian, there are excellent responsible investment opportunities in all markets on which investors can capitalize. “In Asia, investors are very commercially astute about investment opportunities. They are making rapid progress with green investments, which are being supported by government policies inmany countries. That is one of the strengths of the Asianmarkets.” In Europe there is a longer-standing tradition of understanding sustainable business. Here, investors are actively looking for companies that demonstrate good performance in this field. “Social performance and sensitivity to the environment are more important factors for European investors. The driver is slightly different but it channels capital into sustainable investment, which is a good thing,” he adds. Progress is mixed in the US: Good headway has beenmade alongside some reductions. “However, I expect that

intention to encourage responsible investment and green finance around the world. One of the ways they wanted to achieve this was by supporting the PRI to expand its activities.” Another positive sign is the new green financing strategy that is currently being implemented in China. “China has just announced a green finance policy that makes it easier for investors to buy Chinese green assets. We really welcome this policy, as do our investors, many of whom are looking to include green assets in their portfolios.” The PRI in Person event also hosted the Sustainable Stock Exchange (SSE) Initiative, which drew speakers from stock exchanges, regulatory bodies, investors, companies, ministries and international organizations to Singapore. Emerging opportunities Fabian says that there is a growing niche for eco-conscious and social investment products targeted at both institutional and individual investors. One sign is the growth of investment in green bonds, which were created to fund projects that have positive environmental or climate effects. Another signal is that investors are voting on environmental resolutions on company boards. Furthermore,

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