Few of us today can claim to be unaware of the progress towards environmental consciousness and with that, some big companies have been adopting environmentally-friendly practices in their processes.
However, when it comes to investing, this simply means that investors are putting money into entities and organisations who undertake corporate responsibility to fight climate change and environmental destruction. This may sound great in principle, but one should keep in mind that the investment goal in discussion should not only generate results and profitable returns but also advocate climate change. While focusing on the compliance aspect of sustainable investing is great, it will only be a win-win when it is combined with a results-centric approach.
IS SUSTAINABLE INVESTING PROFITABLE?
The good news is that sustainable investing looks poised to grow in upcoming years if its trend over the past few years means anything. Assets in sustainable investments have been growing rapidly in recent years and while this trend is expected to continue, all investors know that nothing is guaranteed.
However, one very good reason one can expect this trend to persist is due to the fact that companies who take accountability for their environmental positions are in the best position to grow. By making use of new processes that cause minimal harm to the environment, they are pioneering a new way of doing business and encouraging more people towards a future where humans can coexist peacefully with our environment.
REASONS SUSTAINABLE INVESTING IS GROWING RAPIDLY
- There are numerous reasons sustainable investing is growing at such a rapid pace, both in popularity and market figures as seen in the listing below.
- Consumers with financial power, both present and future, are demanding more accountability from the entities they receive or purchase goods and services from. With the next generational shift, this trend will become even more prominent.
- Governments, regulations and organisations are increasingly considering sustainability in their investment and purchase decisions. This forms part of their accountability towards consumers and citizens.
- Research into the environmental, social and governmental factors surrounding s ustainable investing has suggested that this approach can help to grow returns and identify potential risks of investing.
MAKE SUSTAINABLE INVESTING PART OF YOUR PORTFOLIO
As Singaporeans, we are well positioned to witness the effectiveness of environmental policies and have even been looked up to as a leader in building green urban spaces. The Singapore Green Plan aims to achieve our goal of net zero carbon emissions by 2030, and HDB complexes have dedicated spaces where we can enjoy a green oasis amidst the limited land mass we have. This is the future of our country and the world, and if you are keen to invest in pushing this change through, sustainable investing is the way to go. For interested readers who wish to learn more or to expand their investment portfolio to include suitable sustainable investment funds, they are advised to reach out to any of their financial consultants to recommend and curate their personal investment portfolio.