Sustainable investing is important because it can help contribute to a better world. Investors can put their capital to work in a way that positively influences society so that we move towards a more sustainable future.

sustainable investment

It is clear that we are facing huge challenges in the area of climate change and also from a social and economic perspective. In order to successfully tackle these issues, governments and companies will need to make drastic changes in the way they operate, and investors have the power to influence how they do this. From the largest asset manager to the smallest individual investor – they can choose to support sustainable enterprise.

Sustainable investing is looking beyond financial returns

An increasing number of people no longer select investments based solely on their ability to generate financial returns. They want sustainable solutions that reflect their values and core beliefs, that make a contribution to the things they consider important and that do no harm. This grassroots shift in demand is spurring the growth of sustainable investing. The range of products on offer is also expanding, giving investors a choice as to the extent of positive impact they make.

For example, solutions at one end of the spectrum exclude investments in harmful activities like tobacco and coal or controversial behaviour like human rights’ violations. At the other end, dedicated impact strategies look for companies that make clear measurable contributions.

A long-term approach

In some areas, investors may need to join forces via collaborations or initiatives to tackle complex problems like child labour and living wages. These issues cannot be solved overnight, and only a long-term collective approach with major industry officials can help turn the tide.

The influence that investors collectively wield can be the tipping point for gradually bringing about fundamental change. Sustainable investing is important because investing in progress helps us work towards a brighter future.

PLEASE NOTE: The value of investments, and any income from them, can fall and you may get back less than you invested.  Neither simulated nor actual past performance are reliable indicators of future performance. Information is provided only as an example and is not a recommendation to pursue a particular strategy.