Sustainable Investing

by | Jul 11, 2019 | News | 0 comments

 

You’ve probably heard of living sustainably. To do this, you avoid the abuse of natural resources to maintain an ecological balance. Essentially, you care about the environment, social justice, and want to leave the smallest negative impact. Did you know by doing business with, and investing in companies that adhere to these standards, you’ll become a sustainable investor?

Why Should You Sustainably Invest

There are plenty of reasons you should become a sustainable investor. The environmental and social effects may directly impact you, or perhaps you’re worried about the Earth’s future. Either way, many investors want their investments to align with their values. It does require extra steps, but many find the extra effort worth it. Millennials are becoming more and more aware of sustainability and preserving the environment, for which sustainable investing can help. This investment style not only boosts companies who are already sustainable but can potentially encourage other companies to do the same.

How You Can Sustainably Invest

Don’t know where to start? Try with environmental, social, and governance (ESG) mutual funds. These funds have already been evaluated, so you don’t have to spend hours researching each company. The criteria to be considered ESG typically includes analysis on the company’s energy use, waste & pollution, natural resource conversation, animal treatment, donations, work conditions, business relationships, and stockholder involvement.

There are obvious benefits to sustainable investing, but have you considered the downsides? Eliminating certain companies from your investment can limit the possibilities and gains on your investment. Unsustainable companies sometimes perform extremely well, which can lead to a missed opportunity.

Many important changes in the past took boycotting, avoiding, and some losses. This style may result in losses or smaller gains but if you’re passionate about sustainability, then this might be an easy decision. Many millennials are investing solely in ESG companies and funds. Eventually, sustainable investing could be less of a risk than investing in other companies. Remember the BP 2010 oil spill? They suffered huge stock market losses because many people couldn’t support the extreme mistreatment of the environment.

Next Step

Do you like the idea of sustainable investing? Making the switch to sustainable investing can be confusing and even difficult on your own. Let RGA give you a hand to ensure it’s done correctly and to your desires. We have a diverse team of experienced financial professionals ready to answer all your financial questions! Want to know if your portfolio is sustainable? A complimentary consultation can help make sure your portfolio meets all your changing needs while ensuring you’re prepared for retirement. Call 1-800-467-8152 or email info@ronaldgelok.com to schedule a time to discuss!

 

Sources:

 https://www.forbes.com/sites/investor/2018/05/10/four-practical-tips-to-help-you-get-started-with-sustainable-investing/#76691cd84660

https://www.investopedia.com/terms/e/environmental-social-and-governance-esg-criteria.asp