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The most successful investors continually ask themselves what they can do to make progress. There are always new opportunities for growth, and one of the most significant ways investors can make a difference is by implementing sustainable investing. This is the act of supporting positive social change through meaningful action.
By supporting sustainable brands, you're not the only one who benefits. Both individuals and businesses can enjoy social and financial gains on a long-term basis as a result of sustainable investments. From reducing your carbon footprint to advocating for human rights, there are numerous ways to actively promote sustainability.
Here's what you need to know about the investment trend and how we can help.
Sustainable investing is the act of investing in a company or venture while taking ESG factors into account. ESG factors — which stand for environmental, social and corporate governance factors — play an integral role in an investor's decision to contribute financial resources to a company.
The ultimate goal of investing sustainably is to inspire social change and corporate responsibility. Over time, this impact can pave the way for long-term financial return, helping companies and individuals make meaningful progress in numerous ways.
Earlier, we looked at ESG factors and dissected their meaning. Another value-based investment is socially responsible investing (SRI). Unlike ESG, SRI involves screening investments, allowing investors to identify businesses that conflict with their personal values.
SRI owes its popularity to its affordability and ease of use. It's also highly valuable to investors who are interested in weeding out businesses that don't match their goals or interests.
There are various ways that investors can implement sustainable investments. Examples of strategies for sustainable investing include:
Each of these steps has a place in the bigger picture of sustainable investing, and they can all lead to greater profits in the long term.
While many of the advantages of sustainable investing are company-oriented, this trend can also benefit society at large. One of the biggest benefits is greater collective societal change. When investors put their money toward organizations they believe in, they're directly supporting these companies' efforts to improve society.
The benefits for companies are also numerous. Businesses with a good sustainability rating tend to enjoy greater profit and dividends, as well as a reduced risk exposure. This drives companies to continue making decisions that benefit their customers, their employees and the world around them.
If you want to get the most out of sustainable investing, you shouldn't go through the process alone. Contact us today to work with a skilled professional who can review your options with you and help you make choices that align with your goals.