Since its founding more than 15 years ago, investment manager Susi Partners has maintained a clear focus – sustainable energy infrastructure. The firm promotes its approach with the slogan „Impactful Returns.“ However, this sector is currently facing some headwinds. „It’s true that the entire sustainability theme has lost some momentum over the past two years, in the geopolitical environment that we all operate in“, Raphaela Schmid, Head of ESG & Sustainability at Susi Partners, comments in the Börsen-Zeitung podcast Nachhaltiges Investieren.

An often heard criticism is that definitions of sustainability and impact are inconsistent, and sometimes difficult for investors to grasp. Schmid emphasises the importance of making internal definitions transparent, and having figures verified by third parties. „Impact is a concept that requires explanation“, she states. There are certainly investor groups where the topic is not introduced right away, but rather brought up later when there is enough time for a thorough explanation. But at the same time, there are investors who actively seek out impact, particularly in Scandinavia, where, based on Schmid's experience, investors also see financial opportunities in sustainability.

She wants to dispel the misconception that impact investing comes at the expense of returns, saying that the two can „go hand in hand quite well.“ In recent years, impact investing has grown significantly, both in depth and breadth. Now, Schmid observes a shift „from idealism to pragmatism.“ Impact does not automatically mean higher costs, but investors must conduct thorough due diligence. She acknowledges that this can be a challenge: „One manager may implement ESG in a different way than another, even if both claim to follow the same approach," she says. The same applies to impact investments – it takes time and resources for investors to understand and compare the details.

Despite the current challenges for sustainability themes, Schmid remains optimistic, and does not view the situation as particularly negative. „Over the past few years, sustainability experienced a boom that may not have always been entirely healthy," she says. Regulations are now attempting to improve comparability. Schmid believes it’s „not a bad thing if the wheat is separated from the chaff.“

Susi Partners manages over 2 billion euros, about half of which is allocated to equity strategies. The firm also operates a debt strategy, and invests in energy transition projects in Southeast Asia, where a full-time colleague oversees ESG matters.

At Susi Partners, a three-person sustainability team ensures ESG integration, but the goal is for ESG to be on everyone's agenda. „There's a significant educational component to it“, notes Schmid. If this effort is entirely successful, she believes, there will eventually be no need for a Head of ESG. „In a way, all sustainability specialists are actually working to make themselves redundant.“