“Investing in European sovereignty is not a political choice, but a rational economic one.”

“Investing in European sovereignty is not a political choice, but a rational economic one.”

Video interview with Eric de Tessières, Group Chief Sustainability Officer, Edmond de Rothschild.
 

As part of the “2030, Investing for Tomorrow” Think Tank, Edmond de Rothschild Asset Management is leading the working group dedicated to European sovereignty, with a specific focus on its ability to accelerate sustainability, and in particular the environmental transition. The objective of the group’s first workshop was to define the concept of sovereignty and to shed light on the links between sovereignty and sustainability. In this video interview, Eric de Tessières, Group Chief Sustainability Officer at Edmond de Rothschild, shares the first key takeaways from these ongoing discussions.

“We are fortunate to have a very clear roadmap in the form of the Draghi report. This report makes it possible to quantify the amounts at stake and to identify the various sectors that will need to be financed in order to secure European sovereignty. It sets out the ambition of such a project and concludes that financing an initiative of this scale will inevitably require the mobilisation of both public and private capital. This is precisely where, as asset managers, we have a role to play,” says Eric de Tessières.

He is convinced that “investing in European sovereignty is clearly not a political choice, but truly a rational economic one.” In view of the gap Europe has fallen into, particularly compared with the United States and China, Europe must get back into the race. “The necessary catch-up by our continent creates investment opportunities. From this perspective, focusing on the theme of European sovereignty makes it possible to benefit from sound geographical and sector diversification. The sectors that will underpin European sovereignty will not necessarily be the same as those underpinning the sovereignty of the United States or China,” notes Eric de Tessières.

Finally, he believes it is essential to “dispel the idea that the rise of sovereignty marks the end of ESG.” The purpose of this working group is therefore to demonstrate that “it is through European sovereignty that Europe will be able to accelerate its ecological and economic transition, defend its social model, its economic model, its values, and its higher standards in terms of production.”