Christian Stearns offers the following in this location:
What Is Sustainable Investing?
Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental, and social. This is informally known as profits, planet, and people.
Sustainable Investing is a broad term for investment approaches that consider Socially Responsible Investing (SRI) as well as Environmental, Social and Governance (ESG) factors. The Sustainable Investing category also includes measuring the Impact from the investments.
When you invest, you are buying into a business. Your investment shows support for the products and services that the business produces. Your investment also shows support for the manner in which that business is operated. Do you really know who you are in business with? Do their values match yours?
Many people ask if investing in Sustainable values with affect their profits. One analysis compiled various studies around sustainable investing and came up with some interesting results. 88% of studies found that companies adhering to Social or Environmental standards showed better operational performance. 80% of studies showed that adhering to Social or Environmental standards had a positive effect on the company’s stock price performance.
According to Morningstar, estimated flows into sustainable funds reached $13.5 billion through September 2019. This is a substantial increase from the $5.5 billion invested in all of 2018. That accounts for a growth rate of more than 150%. Would you like to be a part of this growth?
Want to get started with Sustainable Investing?
I'd be happy to answer any of your questions!
Need to know where you are going with your investments? Let's find your starting point with an Asset-Map!