What is Sustainable Investing?
Author: Sound Choices
June 20, 2017
Making a positive impact with your savings
If you find yourself concerned about what’s wrong with the world, but can’t figure out what you can do to make a difference, sustainable investing is a way to take action. Here are some important reasons to consider this investment approach.
What is sustainable investing?
Sustainable investing started with investors looking to avoid controversial companies in their portfolios (for example, tobacco, weapons or gambling). Today it also focuses on companies, organizations and funds that generate a positive social or environmental impact, along with the potential for financial growth.
Growing priority for investors
Sustainable investing assets held by individuals almost doubled in the last two years. A major contributor to this growth is the accumulating wealth of the millennial generation. Compared to prior generations, millennials appear to make investment decisions based largely on their personal values. They also care more about the products and services companies provide, and the environmental or social impact companies are having.1
Companies also investing in sustainability
Companies are also becoming more aware of environmental and social issues. Their objective has shifted from maximizing profit at all costs to a more balanced approach that also includes sustainable initiatives.
In fact, ‘business as usual’ is no longer sustainable. If companies don’t adopt to change, they may not survive. For example, LED lighting is now a popular choice – and incandescent bulbs are becoming obsolete. Any company who does not offer LED as a lighting option in their product line will find it challenging to compete in the marketplace.
1 2014 U.S. Trust Insights on Wealth & Worth Survey.
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