Spanish managers are more likely than international managers to exclude controversial sectors from their sustainable funds. At least, this follows from Spainsif 2024 annual studywhich analyzes the progress of investment based on environmental, social and corporate governance (ESG) criteria in this country and which was presented this Tuesday in Madrid. The most common exclusions in responsible investment funds concern what are called controversial weaponssuch as cluster bombs (which release a multitude of small bombs when opened and are banned in more than 100 countries), or antipersonnel mines (which camouflage themselves in the ground and are activated when stepped on, and which were also banned). by more than 100 states). More than 80% of managers, Spanish and international, agree to exclude them from their portfolio. However, when it comes to weapons in general, there is not much agreement: 56% of Spanish managers exclude them from their sustainable funds, compared to 20% of international companies. Visit the specialized elEconomista ESG portal.
This strategy based on exclusions is one of the most used by sustainable investment funds. It consists of excluding companies or countries because of their exposure to sectors with a high negative impact or because they do not respect international human rights standards. Besides the aforementioned controversial weapons, the most common exclusions in ESG investment funds relate to human rights abuse, fossil fuels and tobacco. But, in all categories, Spainsif’s analysis shows how national managers are more likely that foreigners to completely exclude from your thematic portfolios sensitive. For example, 67% of Spanish companies exclude tobacco, compared to 40% of international companies; in the case of gaming, it is 43% compared to around 25%).
To obtain this data, Spainsif conducted surveys with 27 national and 15 international asset managers and owners, which together represent 84% of the assets of Spanish entities. The study, carried out with the support of DWS, also reveals the volume of assets managed by national entities meeting ESG criteria in Spain, which amounts to 236,894 million euros. This figure is not comparable to that of previous years because Spainsif has changed its methodology, and now distinguishes four categories: ESG, Advanced ESG, Investments aligned with impact And Impact-generating investment. Spainsif is a non-profit association integrated into Eurosif, an association which brings together the different national sustainable investment forums (FIS) in Europe.
It is precisely because of this methodology that the Spainsif data differ from those recently disclosed by Inverco, the management association, according to which practically 36% of the assets of Spanish funds are sustainable, that is to say that they are classified as section 8 or like article 9, which are the two categories of sustainable investment vehicles envisaged by the European Commission’s Sustainable Finance Disclosure Regulation. In September 2024, the assets of sustainable funds reached 138.838 million euros, according to the employers’ organization.
The report also shows that the active dialogue initiatives with the companies in which we invest and vote at the general meeting (i.e. positioning oneself against proposals that do not respect ESG criteria) have already consolidated their role as one of the most widespread practices in Spanish sustainable investment: 88% of national managers use them.
During the event, the new Strategic Plan of Spainsif 2025-2027 was presented, which will guide the organization in the coming years along 5 axes: strengthening advanced sustainable investment strategies oriented towards impact, promoting sustainability financial education and support to the individual investor, engagement with the regulatory and supervisory environment for sustainable investment and finance, analysis of outstanding sustainability issues for investment and promotion of sustainable financing practices, instruments and sources.
In the words of the president of the association, Joaquin Garralda“The new Strategic Plan 2025-2027 represents an ambitious commitment from Spainsif to lead the advancement of sustainable finance in Spain. It establishes a clear framework to strengthen strategies with greater capacity to transform the real economy of financing and investment, both for institutional investors and for the general public and small and medium-sized businesses Spainsif’s commitment to innovation and financial education, with a particular focus on SMEs and Spanish-speaking collaboration. , reinforces our objective of promoting changes in investment and financing processes to contribute to sustainable development.
