Sustainable Investing – A Rising Trend
Statistics in a recent UN report indicate that the world’s population is growing at a rate of around 83 million people every year. By 2050, there will be 9.8 billion people in the world and more of us are living longer.
This means more of our future selves will be affected by the way our nations are run, the state of our environment and the wellbeing of the people in it.
Environmental issues such as climate change and plastic pollution are constantly in the media and as such, it is impossible to ignore the impact we are having on our planet.
If you are someone who wants to make a positive difference, you might be interested to know how you can use your investments to benefit the environment and society, as well as yourself.
What is sustainable investing?
Every company has an impact on the world around us, and by investing in them, so do we.
Sustainable investing recognises this fact. It combines traditional investing with environmental, social, and governance related (ESG) insights to improve long-term outcomes. Companies with strong profiles on material sustainability issues have the potential to outperform those with poorer profiles. Companies managed with a focus on sustainability can often be better positioned compared with their less sustainable peers to weather adverse conditions while still benefitting from positive market environment.
A rising trend
Over the last decade, sustainability has become increasingly important in the world of investment with more and more investors wanting to know where their money is going and what it’s being used for. Investors want assurance that their investments are comfortably aligned with their own values.
According to a Global Investor Study by Schroders, more than half of UK investors have increased their sustainable investments over the past five years, including over 85% of people aged 18 to 36, who consider sustainable investing as being important to them.
In response, more governments, corporations and investors are adopting sustainable investing principles and this increasing demand is driving the mass growth of these types of investments.
Interested in sustainable investing?
If you are looking for an investment strategy which allows you to invest with a conscience, you might want to consider sustainable investing.
Whatever matters to you most – be it environmental pollution or animal welfare or– it’s possible to invest with a conscience and still make a profit.
Sustainable investing, like any other form of investing, still comes with risk. This means there’s a chance you may get back less than you put in and your capital is not guaranteed. A sustainable investment should be seen as a medium-to-long-term commitment, meaning you should be prepared to invest for at least five years.
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The information was correct at time of publishing but may now be out of date.