OPINION
The business case for generosity – WHY BUSINESS LEADERS NEED TO GIVE BACK
From the investor’s perspective, it makes absolute sense to back the companies and industries aligned with a sustainable vision of our world, says Jessica Robinson
while there are nuanced differences, it’s fair to say that the commonality is to achieve positive change –invariably with a social or environmental dimension. However, sustainable investing isn’t just about avoiding investing in companies that do harm. There is a new class of investors actively seeking out companies that address daunting social and environmental challenges while also delivering financial returns. These companies fall into a wide range of industries and sectors – ranging from food to transportation, and from healthcare to education; the universe for sustainable investors is extensive. In recent times, there has been a great deal of discussion around the role of capitalism and the systems it creates, with some people questioning whether capitalism is, in fact, in need of saving from itself. This shift in thinking is challenging many of the assumptions we have made, with more and more people posing questions such as: ‘How can the reckless, unbridled and extremely damaging behaviour of some companies go unchecked?’ And: ‘Could we could reset the private sector, and our expectations of companies, to push business to be a powerful tool for social good?’ This is where investors – both institutional and retail – have a role to play in helping to change
lthough the concept of sustainable investing has been around for quite a while, for many, it has taken a long time for the penny to drop. However, today, more and more people are realising that we can use our wealth, through our investment decisions, to bring about positive change in the world. The momentum behind sustainable investing has been slowly gathering over the past couple of years. In fact, 2022 may well be the year that sustainable investing comes of age. With the world still reeling from the Covid-19 pandemic, and the climate crisis becoming increasingly apparent, people are thinking about the impact of their investment decisions – on society, on the environment and on the communities in which we live. But sustainable investing is no longer seen as a nice-to-have. Sustainable investing is now seen as smart investing – as a way to build the kind of future that we want for people and our planet. What are we talking about? Sustainable investing is an investment discipline that considers environmental, social, and corporate governance (ESG) criteria to generate long- term competitive financial returns and positive societal impact. Various other terms are often used – for example, responsible investing, impact investing or ethical investing – and
Jessica Robinson is an expert on sustainable finance and responsible investing, and author of Financial Feminism: A Woman’s Guide to Investing for a Sustainable Future. Find out more at moxiefuture.com
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Ambition | BE IN BRILLIANT COMPANY
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