Countries with healthy ecological balance sheets make for safer investments and will be better able to meet their debt obligations—so says Balacz Magyar, a representative of Swiss-based private banking firm Sarasin Bank. The bank, with 63.2 billion worth of assets under management, has implemented a system of rating country bonds based on sustainability and Ecological Footprint. Countries are required to meet a minimum resource efficiency and availability threshold to be eligible for inclusion in certain portfolios. “We believe that only these countries will be able to pursue the economic activities they will need to pay back their debts in the long-run,” said Balazs Magyar, Head of Sustainable Investment Portfolio Management for Sarasin. High foreign and public debt means conceding future resources to someone else, he said, and the issue is similar for ecological as for economic debt.
Read more about Sarasin’s Sustainability Ratings.