Environmental, social and governance-focused investing has become a key priority for institutional investors globally over the past few years, leading to a rapid expansion in the universe of ESG-labelled investment products and funds.
This in turn is helping to open up ESG investment opportunities to investors at all levels of wealth and sophistication, a strategic priority for FNB under its ambition to support the so-called democratization of investing in South Africa and across the continent.
Evidencing this effort, the bank listed six exchange-trade notes covering three key ESG indices – MSCI World SRI [Socially Responsible Investment] Index, S&P Global Clean Energy Index and the S&P Global Water Index – providing its clients with the opportunity to invest at a low-cost across these three important themes.
Each ETN – issued by the bank – is available with a currency link or with the currency removed, and is listed at a R10 ($0.55) price per unit with no brokerage charges levied on trading them, helping to open up the ESG investment opportunity to a universe of small investors.
The judges applaud what they describe as FNB’s sound commitment to responsible and sustainable investing
It is for this innovation, supported by the bank’s dedicated ESG division – which advises and educates clients on sustainable investment and business development – and its green-financing solutions that FNB stands out in this awards category, according to the judging panel.
In particular, the judges applaud what they describe as FNB’s sound commitment to responsible and sustainable investing, as well as a “deep understanding of the importance of ESG investing and a strong commitment to making a positive impact on the environment and society.”
A good example of this was the incentive the bank offered clients via its eBucks retail rewards platform to make their homes more sustainable and resilient to power outages.
FNB created a portal called EcoHome Solutions on the platform, enabling clients to shop for discounted alternative energy solutions – including smart meters, heat pumps, solar hybrid and water filtration technology – and pay using eBucks rewards.
