How can sustainable investments best be implemented? This is one of the questions that Robeco's experts have looked into in their latest study, "Sustainability Inside". While they identify some disadvantages of investing via passive vehicles, they conclude that factor investing is the best way to integrate sustainability into the investment process.
The view is increasingly gaining ground among investors that the consideration of sustainable aspects in financial investments has more advantages than disadvantages in terms of risk and return. Investors are increasingly using passive investments, i.e. exchange traded funds (ETFs) or smart beta approaches, to implement sustainable aspects in their financial investments, primarily for cost reasons. However, according to the Robeco study, these have a number of disadvantages with sustainable investments.