Sustainable investing is becoming more important to investors and companies alike. Sustainable investing is a way to integrate environmental, social and governance (ESG) factors into your investment portfolio. It’s also a way to align your investments with your personal values by investing in companies that have positive impacts on society and the environment. Here are five trends that will help you get started with sustainable investing:
Financial Performance Matters – Returns That Stand The Test Of Time
First and foremost, you should assess a company’s financial performance. As it turns out, there are plenty of companies that perform well financially and sustainable ones. You can look at their financial statements or annual reports to see how they performed in the last few years. It’s important to understand that sustainability has nothing to do with short term performance as many investors think it does.
The Sustainable Stock Market is a group of companies that have high social and environmental standards along with excellent financial performance over many years.
Shareholder Activism
Shareholder activism is becoming more popular as investors become more aware of the importance of Nachhaltig Investieren Investing sustainably). Shareholder activism refers to the practice of shareholders using their power as owners to influence corporate decisions in favor of sustainability. Shareholder activists may be individuals or groups who are interested in environmental or social causes, or they may be professional investors looking out for the best interests of their clients.
Sustainable Finance Is Gaining Momentum
Sustainable finance is becoming mainstream.
- Sustainable, responsible and impact investing (SRI) has long been seen as a niche market—but it’s now growing rapidly. In fact, according to research conducted by FTSE Russell and Cambridge Associates, SRI assets have increased at an annual rate of 11% since 2011.
- The combined value of all SRI funds reached $22 trillion in 2018—more than half the size of conventional funds for the first time ever!
As more people are encouraged to take notice of their financial decisions, it’s clear that sustainable finance is something you should get involved with if you’re looking for your investment dollars to do good while still earning returns on your money.
Impact Investing
Impact investing is a subset of socially responsible investing (SRI) that focuses on making money and making a difference. In a nutshell, it can be defined as the practice of using capital to support ventures that address social or environmental needs while also delivering market-rate returns.
Socially Responsible Investing (SRI)
Socially responsible investing (SRI) is the practice of investing in companies that have a positive impact on the world, including environmentally and socially responsible companies. It’s also a way to invest in companies that support your values—for example, if you care about fair labor practices or want to avoid investing in tobacco companies.
SRI can be done through an investment advisor who specializes in SRI or by purchasing funds from an SRI fund manager.
SRI has been around for a long time. It’s not a new trend, and it was originally aimed at institutional investors like pension funds. However, there are now many ways to invest sustainably that are accessible to retail investors.
