Investment opportunities with “green” shares

The integration of environmental, social and governance indicators (ESGs) into both bank financing criteria and the investor portfolio marks a new era in our economic life.

The transition to a low-carbon society is accelerating, the focus on the environment, society and business governance can create interesting investment opportunities, while providing an alternative view of risk management, according to HSBC. This perspective even creates opportunities in "green" sectors, such as clean energy, "green" infrastructure, transport, buildings, industrial products and broadband technology, sectors that are intertwined with modern trends.

For investors, focusing on these factors is considered an effective way to manage risk, enhance potential resilience, and leverage green innovation to generate long-term capital growth.

«ESG assets»

According to market participants, ESG is a megatrend in the markets internationally, with a significant part of the inflows in mutual funds and other investments being directed to "ESG assets", while it is estimated that, in the period 2023-2025, 50% of the mutual funds will operate according to ESG criteria. Stock exchanges and infrastructure providers are also expanding to become viable financing markets (e.g. ESG products, "green" bonds). On the other hand, a requested and big bet for the Athens Stock Exchange is the mobilization of Greek companies so that they are eligible by the institutions, at a time when the investment community is increasingly looking for opportunities in ESG.

The new index

In this context, the new Athex ESG index of the Athens Stock Exchange came into force on August 2, which initially includes 35 "green" shares of listed companies that adopt and promote their practices in...