Blog "Investing for the future: where values create value"

On his sustainability blog, Jörg Moshuber, the CIO of Schoellerbank Invest AG, analyses current sustainability trends. He highlights opportunities and risks, and provides market outlooks with a focus on sustainable asset classes. 

Edition 01 (Oct 2025) - The Pope; Donald; Trump, The Transition and the Economy

The Pope, Donald Trump, the transition and the Economy

Pope Leo XIV delivered a powerful appeal to humanity to protect the planet. He repeated Franci´s words that”some have chosen to deride´the increasingly evident signs of climate change, to ridicule those who speak of global warming and even to blame the poor for the very thing that affects them most”

“What must be done now to ensure that caring for our common home and listening to the cry of the earth and the poor do not appear as mere passing trends or, worse still, are seen and felt as divisive issues?” he said. His words underscore the moral urgency to counteract the destruction of our natural foundations of life – a call to politicians, companies, and civil society alike to take responsibility.

In contrast, U.S. President Donald Trump once again expressed his skepticism toward climate change before the UN, calling it the "climate lie" which, in his view, unnecessarily hampers economic development. Trump’s stance sharply contrasts with the global consensus and creates political tensions in international climate policy.

Europe launched the highly ambitious European Green Deal in 2019. The Green Deal aims to make Europe climate-neutral by 2050 and drives the transition to a sustainable economy – featuring renewable energy, reduced CO₂ emissions, and increased circular economy practices. The “Just Transition Mechanism” supports regions and workers particularly affected by the transformation. Thus, the Green Deal links climate protection, the economy, and social justice as a pathway to a sustainable future.

Subsequently, numerous initiatives followed, culminating in the Fit for 55 package, sending a strong signal for the energy transition and expanding the carbon market. Europe’s Emissions Trading System (EU ETS) is the world’s leading carbon market, a central instrument to economically limit CO₂ emissions and advance the transition to a climate-neutral economy. Furthermore, the EU’s Taxonomy Regulation (EU) 2020/852 established the obligation for European companies to collect and publish CO₂ data. Despite these efforts, ambitions in Europe have somewhat waned recently.

Nevertheless, the EU laid the foundation for CO₂ data collection through the Taxonomy Regulation, creating a comprehensive database.

The economy, particularly in Europe, shows that government pressure is not necessarily required in many areas. The transition – that is, moving away from CO₂-intensive energy production and saving energy – saves money, and many innovative, successful companies have long recognized this. This shift is now reflected in the capital markets. More and more companies see the ecological transformation as an opportunity not only to reduce their CO₂ emissions but also to drive innovation and growth. Investments in renewable energy, sustainable technologies, and circular economy practices are increasing significantly.

Transition has arrived in many sectors, for example in energy, where renewable sources like wind and solar are being rapidly expanded, and fossil-fuel power plants are being phased out. In transportation, electrification is advancing with a growing range of electric vehicles and sustainable mobility solutions. Industry is increasingly adopting energy-efficient and climate-friendly production processes as well as circular economy principles, especially in energy-intensive sectors like steel and chemicals. In the building sector, energy renovations and sustainable construction materials significantly reduce energy consumption. Agriculture is also transforming through sustainable farming methods and lower-emission livestock farming. Last but not least, the financial sector plays a central role, with growing interest in ESG investments and the expansion of CO₂ markets like the EU Emissions Trading System. Overall, these developments demonstrate how broad and profound the transition in Europe has already become.

Moreover, it appears that companies that are especially innovative and growth-oriented are also strongly committed to the transition. This, combined with strong economic data, often acts as a performance driver for publicly traded companies.

Transition has thus firmly arrived at the core of investment strategies

All editions

Edition 01 (October 2025)

The Pope, Donald Trump, the transition and the Economy

Pope Leo XIV delivered a powerful appeal to humanity to protect the planet. He repeated Franci´s words that”some have chosen to deride´the increasingly evident signs of climate change, to ridicule those who speak of global warming and even to blame the poor for the very thing that affects them most”

“What must be done now to ensure that caring for our common home and listening to the cry of the earth and the poor do not appear as mere passing trends or, worse still, are seen and felt as divisive issues?” he said. His words underscore the moral urgency to counteract the destruction of our natural foundations of life – a call to politicians, companies, and civil society alike to take responsibility.

In contrast, U.S. President Donald Trump once again expressed his skepticism toward climate change before the UN, calling it the "climate lie" which, in his view, unnecessarily hampers economic development. Trump’s stance sharply contrasts with the global consensus and creates political tensions in international climate policy.

Europe launched the highly ambitious European Green Deal in 2019. The Green Deal aims to make Europe climate-neutral by 2050 and drives the transition to a sustainable economy – featuring renewable energy, reduced CO₂ emissions, and increased circular economy practices. The “Just Transition Mechanism” supports regions and workers particularly affected by the transformation. Thus, the Green Deal links climate protection, the economy, and social justice as a pathway to a sustainable future.

Subsequently, numerous initiatives followed, culminating in the Fit for 55 package, sending a strong signal for the energy transition and expanding the carbon market. Europe’s Emissions Trading System (EU ETS) is the world’s leading carbon market, a central instrument to economically limit CO₂ emissions and advance the transition to a climate-neutral economy. Furthermore, the EU’s Taxonomy Regulation (EU) 2020/852 established the obligation for European companies to collect and publish CO₂ data. Despite these efforts, ambitions in Europe have somewhat waned recently.

Nevertheless, the EU laid the foundation for CO₂ data collection through the Taxonomy Regulation, creating a comprehensive database.

The economy, particularly in Europe, shows that government pressure is not necessarily required in many areas. The transition – that is, moving away from CO₂-intensive energy production and saving energy – saves money, and many innovative, successful companies have long recognized this. This shift is now reflected in the capital markets. More and more companies see the ecological transformation as an opportunity not only to reduce their CO₂ emissions but also to drive innovation and growth. Investments in renewable energy, sustainable technologies, and circular economy practices are increasing significantly.

Transition has arrived in many sectors, for example in energy, where renewable sources like wind and solar are being rapidly expanded, and fossil-fuel power plants are being phased out. In transportation, electrification is advancing with a growing range of electric vehicles and sustainable mobility solutions. Industry is increasingly adopting energy-efficient and climate-friendly production processes as well as circular economy principles, especially in energy-intensive sectors like steel and chemicals. In the building sector, energy renovations and sustainable construction materials significantly reduce energy consumption. Agriculture is also transforming through sustainable farming methods and lower-emission livestock farming. Last but not least, the financial sector plays a central role, with growing interest in ESG investments and the expansion of CO₂ markets like the EU Emissions Trading System. Overall, these developments demonstrate how broad and profound the transition in Europe has already become.

Moreover, it appears that companies that are especially innovative and growth-oriented are also strongly committed to the transition. This, combined with strong economic data, often acts as a performance driver for publicly traded companies.

Transition has thus firmly arrived at the core of investment strategies