Investing is taking a step up especially after witnessing the staggering gains as the pandemic subsides. All this has hype has made people pay more attention to investing and adding value to their investments. There are various ways one can invest money, stocks being traditional with mutual funds, ETFs, etc. on the rise. As investing is picking pace, criteria to do the same are changing by the minute. An investor looks at the potential blue chips from every standpoint, fundamentals, sales, profits, turnover, etc. Amidst all this sustainable finance is becoming more and more important as it benefits both investors and customers. Sustainable finance refers to any financial service incorporating environmental, social, and governance (ESG) into investment or business decisions.
fresh Air or fresh Money?
As we all know, the environment and its viability are of extreme importance. Recent studies, figures, show the practical impact of the same in cities, etc. alarming the need for effective solutions. The goal of sustainable development is being eyed on by every country, companies are also taking major steps for the same. The concept of sustainable finance ensures that businesses are integrating environment-friendly decisions into their roadmap. This further benefits their goodwill, as it merges with the goal of sustainable development. Combining to create a value creation in economic terms, harvesting prosperity, efficiency, and long-term stable growth.
As an investor seeks the hidden value and potential of a business, sustainability comes as a crucial factor. Moreover, with incentives being provided to invest in sustainable enterprises, it becomes a no-brainer investment. As value seekers, we should look out for companies who value their customers as much as the environment. With sustainable finance, one can fund these enterprises and take a step towards a more sustainable future. Many organizations such as WWF are working towards integrating environmental considerations into the mainstream finance and lending sector. Identifying sustainable opportunities, collaborating with banks, financial institutions, etc., spearheading the need for a sustainable economy.
A good investment creates wealth, not money
Sustainable finance has brought major changes to the functioning of businesses and investing. This change and focus on the environment and result directly affect a brand’s image and position in the market. All this adds to a greater benefit to everyone, investors, customers, and most importantly the world we live in. We need to be more cautious about the environment. We, investors, have the power to change the world. And if a step in the direction of environmental conservation and preservation earns us a good return, then why not!
“Sustainable development is a fundamental break that’s going to reshuffle the entire deck. There are companies today that are going to dominate in the future simply because they understand that”. –Francois-Henri Pinault