Adapting to the Rapid Changes in Sustainable Investing

A Fast-Growing Investor Demand

With the impacts of climate change becoming even more pressing this summer, urgency is growing to find solutions to the mounting problems impacting both society and the environment. 

Despite a desire to direct investment dollars into climate solutions and away from the securities of firms that are contributing to the problems, a gap exists in the investment industry. While 86% of investors want to see the impact their money is having on the world, many asset managers and advisors do not have the technology to provide these insights. 

In response to the growing threat of climate change, both the SEC in the United States and regulators in the European Union have begun implementing regulations to better support and monitor green investments. The EU Sustainability Finance Disclosure Regulation (SFDR) is a push towards stimulating more capital to be invested in a sustainable economy. By mainstreaming sustainability concerns into risk management, investors’ duties are more clearly outlined when it comes to accounting for environmental damage. Positioning investments to account for a more robust, green economy, the EU SFDR is providing opportunities for expansion in the sustainable economy. 

With mounting concern towards climate change and growing compliance regulations, investors need the tools and insights to effectively manage their portfolios and investments. Whether they are serving institutional investors, or your neighbor next door, startups are revolutionizing transparency behind impact investing.

The Power of Simplicity

Startups are problem solvers; they are born out of creativity and brought to life by founders who see a solution to a growing need before the rest of the world. And yet, too often, especially in the financial industry, people forget about the power of simplicity. 

As humans, we have this compulsive desire to overcomplicate things. As financial professionals, we are even more used to it. It is probably because it looks smart to create products with intricate software interfaces or use financial jargon and weird acronyms. 

Even with a tendency to overcomplicate, we always return to simplicity; as busy humans, we have an unconscious predilection towards intuitive solutions, it’s the only way we can truly get results efficiently. This logic extends to the financial industry as well. Despite a gravitation towards fancy wording and software, at the end of the day, a clear strategy and transparent communication is still at the heart of strong and successful investor relations. 

Enabling Sustainable Investors

Physis was built to be a comprehensive sustainable data library for all investors, for sophisticated financial professionals. This means our platform is intuitive, transparent, and above all, customizable. We strongly believe that one of the key missions of fintech is to provide product and service accessibility. Whether you are an asset manager, RIA, or family office, if you are an investor: Physis will meet you where you are. 

Now is the time for even more innovative solutions that will add new zest to the traditional investment experience. Physis is easy to use, extremely thorough, and your one-shot platform for impact reporting; simply type an investment name or ticker and Physis will compile detailed and comprehensible information on the financial and sustainable data of the investment based on your interests and priorities. 

We tell the real story behind an investment, don’t you want to know yours? Book a meeting to learn how Physis can help you!