If your company is looking for a way to contribute to a better world, then look no further than sustainable investing. Today, investors have the opportunity to employ their capital to work towards creating a society that is always moving towards a brighter and greener future. It doesn’t take much to notice that our planet is facing great challenges when it comes to climate change, which in turn, affects our social and economic position. Individuals, companies and governments who want to positively affect these issues need to make significant changes in their operations. But if investors keep pushing, they can really influence everyone, from the largest company managers to small businesses, to support sustainable investments and ensure future growth. Let’s dig a little deeper into the issue.
What is sustainable investing?
According to most successful investors, the future of sustainable investing lies in the balance—it includes balancing financial and non-financial issues, as well as short and long-term goals. Short-term goals should not in any way affect and influence long-term goals. Plus, stakeholder interests should be balanced and focused on finding the best solutions for everyone involved. Obviously, none of these tasks are easy to achieve, but sustainable investing is the key to good investing and future growth. Sustainable investing is not an open book—it includes many unknowns. However, there are a few main tenets that cause sustainable investing to be better than the deals we had before. Firstly, it’s highly addictive, meaning you can add it to any foundational concept. Secondly, it provides us with a deeper insight into how to go forward without harming environmental, social and governance efforts. Thirdly, it considers many people and many investors.
What influences sustainable investing?
More and more corporations and governments are in demand for sustainable investing, with many different trends emerging. In the prior years, we globally tried to standardize and push Environmental, Social and Governance investing (ESG investing) and finally, we have entered something resembling a mainstream phase of ESG investing. Additionally, due to the COVID-19 pandemic, investors were forced to focus more on the resilience of the financial system and making it more sustainable in every sense. But with the emergence of strategic business consulting experts, companies are encouraged to activate and aim for a more sustainable future. These consulting experts turn ideas into strategies and help their clients achieve a positive impact on the environment and their company value. It’s obvious that social and environmental factors are more important than they have ever been before.
Investor demand
Investor pressure is one of the most visible and powerful factors that push toward sustainability. In 2020, around 85% of investors took ESG factors into consideration while investing, and over 90% of banks have sectors dedicated to monitoring ESG performance. It’s clear to see that the world of investing is putting a heightened focus on sustainability in every sense. And being sustainable doesn’t just mean doing the right thing and sacrificing profit—it leads to a long-term profit of great sustainability.
Looking at the bigger picture
We’ve mentioned the bigger picture many times so far, so let’s explain it a bit closer. More and more companies and governments are choosing their investments not only on their potential to generate wealth. What investors are looking for today is sustainable solutions that have a positive effect on their values and things they hold important, all that while doing no harm. This shift in demand is pushing the growth of investing in sustainability. Today we have a whole new bunch of products that give investors a choice on how much they want to impact the world positively. For instance, some investments focus on avoiding any sort of engagement in harmful industries like tobacco production, coal mining and human rights violations. On the other hand, some solutions include actively trying to include strategies that contribute to sustainable development goals. Also checkout latest German news.
Thinking of the future
There are very serious issues the world is facing today. For instance, investors need to jointly push towards solving issues like fair wages, child labor and reduction of pollution. Obviously, there is no way to solve every problem overnight, but only long-term collective efforts can help steer the ship in the right direction. Investors wield amazing power and they can be the breaking point between fundamental change and things staying the same. Investing in sustainability means investing in progress and this leads all of us toward a better future.
In the upcoming years, sustainability will be one of the most important components of NFT marketplace business. Already, the number of designated Chief Sustainability Officers is rising in major companies, so it’s important to listen to investors and ensure proper growth in all spheres through sustainability.