Guest blog from Katerva on the rise of sustainability investors
Guest blog from Katerva The Rise of Sustainability Investors
The very definition of
sustainability hints towards the long-term, as it involves ensuring that what
we do today will not jeopardise being able to continue doing it many years
hence. It seems plausible to assume that investors who are
interested in sustainability will have not only a longer-term outlook for
themselves but also for the companies that they invest in.
It seems that more and
more business leaders agree with the statement of Salesforce founder and
co-CEO Marc Benioff that, “Yes, profits are important, but so is society. And
if our quest for greater profits leaves our world worse off than before, all
we will have taught our children is the power of greed.” (We will be looking
at sustainability leadership at the individual and organisational levels in
our February newsletter).
So changes in consumer
behaviour is one driver affecting performance. The other is changes in the
investment industry itself. To quote from the Chicago study, “If the
ESG factor performed well during a 10-year period, then during that 10-year
period, you could see green assets outperforming brown assets or stocks of
companies that do not specifically embrace ESG criteria,” they explain.
Indeed, the Chicago
research highlights how ESG investing is resulting in an increase in green
activities in relation to their brown alternatives. This boost is
happening in a couple of ways.