Why Invest Sustainably?

After setting the scene in our previous article, ‘What is sustainable investing?‘, it seems only right to now ask the question ‘Why invest sustainably?’. We believe that all companies wishing to achieve long-term success should consider their impact on the environment and society.

In our opinion, tackling the issues that our global community faces is one of the key responsibilities of all businesses, across all industries. We believe that financial markets need to play an integral part in the global transition towards a more sustainable future for our society and the environment.

One of the major investment themes we are seeing in sustainable investing is that of the ‘green revolution’. There are many investment opportunities across the entire lifecycle of the green transition – from electrical vehicle manufacturing, to lithium recycling plants, to renewable energy.

Since the start of the year, momentum behind the green transition has continued to gather pace. We believe this is part of a sustained long-term trend that will continue to attract attention from policy makers and an increasing number of investors¹.

Whilst we have an Investment Committee responsible for researching the marketplace independently this is a sector of investing that cannot be ignored.

We strongly believe that by investing in these areas, clients will capture these major multi-decade trends that are part of policy maker’s announcements.

Climate and sustainable growth are at the heart of their strategies and by investing, with a consideration of these global issues, will undoubtedly continue to add a lot of value for portfolios for years to come.

We have an independently reviewed range of funds that we actively advise our clients upon and also consider Sustainability at all levels within our core proposition. Sustainability should not start and end with an investment process. Investment houses offering sustainable portfolios to clients should also have business-wide environmental and social initiatives in
place, to minimise the negative impact of operations, and even generate positive impact.

Businesses should be using their resources and talent to generate this positive impact, be it offering specialist in-house expertise to other industries or allocating profits to organisations in desperate need of funding.

For us, it is important that sustainability is embedded within our company culture and ethos.

If you would like any further information on sustainable investing please do not hesitate to get in touch with one of our advisers today on 0117 450 1300. 

1 LGT Vestra, Sustainable Model Portfolio Service, 2021