Globally, it’s accepted that the planet is under threat and consumers are increasingly demanding accountability from the companies they deal with. The younger generations, in particular, are more and more vocal about sustainability and how organisations are addressing these issues.
According to the Global Trends for 2022 report by S&P Global, by the end of this century, around 150-200 million people could be forced to migrate from land that will be underwater by that point. In addition, estimates are that food production will need to increase between 26% and 68% by 2050, to keep pace with a growing global population.
These are just some of the pressing issues faced by organisations and consumers alike. It was against this backdrop that Glacier by Sanlam and BNP Paribas introduced a solution called the Glacier Sustainable World Enhancer, which invests only in companies that contribute to sustainable development goals.
Invest well, while doing good
The Glacier Sustainable World Enhancer gives investors exposure to the Solactive Sustainable Development Goals World RC 8 EUR Index. Companies in this index are chosen for incorporating global ESG (environmental, social and governance) standards and because they contribute to the Sustainable Development Goals of the United Nations. In designing this investment offering, BNP Paribas went a step further and also looked for additional ways to actively contribute towards sustainable development.
“This led to the collaboration with Reforest’Action, an international organisation working with two local companies,” said Alice Loevenbruck of BNP Paribas. “The goal is to restore the ecosystem of identified areas in the Eastern Cape, by planting Spekboom trees. Spekboom is a local species which is essential to the ecological functioning of the region.”
Investors in the Glacier Sustainable World Enhancer contribute towards reforestation as a certain number of trees are planted after each issue of the investment.
To date, 21 736 trees have been planted in this area as a result of investments into the Glacier Sustainable World Enhancer.
The tree-planting initiative supports local jobs, generates oxygen and contributes to the development of local biodiversity.
These are just some of the benefits of reforestation:
- Helps fight against global warming
- Helps environment-specific flora and fauna biodiversity
- Restores arable land
- Regulates the rainwater cycle
- Benefits local farmers and the sustainability of small farms in the region.
About the Glacier Sustainable World Enhancer
The Glacier Sustainable World Enhancer is a five-year, structured investment solution that provides the opportunity for enhanced participation in the growth of companies that contribute to sustainable development across the globe, with the certainty of capital protection. It is set up in a tax-efficient sinking fund policy underwritten by Sanlam Life and is linked to the performance of a portfolio of global companies that contribute to the sustainable development goals of the United Nations.
“Glacier partnered with BNP Paribas to bring this offering to market as we both identified the need for a solution such as this one. The Glacier Sustainable World Enhancer is aimed at investors seeking to enhance upside while protecting their capital in volatile and uncertain markets and enables them to contribute towards a bigger cause at the same time,” said Roenica Tyson, Investment Product Manager at Glacier.
Source: Global Trends for 2022 by S&P Global