Jul 06, 2020  | Tags: sustainable investing, sustainability

Our Insights

In recent years, there has been a growing number of investors who prioritise environmental, social and governance (ESG) related factors when making their investment decisions.

Now, with climate change, social justice issues such as Black Lives Matter and a global pandemic changing the way we look at the world, even more people are placing higher importance on living out their values and becoming conscious about where they put their money.  

So, sustainable investing has become the perfect solution to grow your wealth while also allowing you to invest in companies who are making a positive impact on the world.  

Sustainable investing puts YOUR values first

Are you passionate about climate change, plastic-waste reduction, and other environmental issues? Are you focused on social issues? Do you prioritise job security or corporate responsibility?

Whatever your personal ESG ideals, sustainable investing enables you to invest in the companies that stand for these values … and you aren’t left worrying about whether your investments are aiding companies who aren't doing the right thing according to your conscience.

In a politically charged world, a greater move towards sustainable investment also holds companies to a higher account - as more investors think sustainably, more companies will have to follow. This creates a better future for everyone.

Reap the financial gains

COVID-19 has seen our economy and stock market suffer majorly, but not all investments have been doomed.

Sustainable business models, that focus on environmental sustainability, diversity, employee health and safety, supply chains and resource risk, are thriving.

Early research has shown that sustainable investments have actually performed better through the global crisis, with ESG portfolios delivering better returns for investors.

Sustainable investments have also shown greater resilience, with studies showing companies that have implemented better policies on social issues and environmental sustainability are performing better in the recent volatile market conditions.

Plus, with so many companies now focusing on environmental and social issues, you now have more opportunity to diversify your portfolio and reduce the risk with your investments.

It is important to remember that while sustainable investing creates a positive impact and supports a better future, there also great returns on offer for you as an investor.

Sustainable investing is on the rise and here to stay

The market for sustainable and impact investing has already seen exponential growth in recent years and is predicted to continue rising. The market has more than tripled from $5.7 billion to $19.9 billion over the past two years and is predicted to hit $100 billion by 2025, according to the Responsible Investment Association Australasia (RIAA).

More and more investors are becoming aware of the many benefits of sustainable investments and are looking to reassess their investment strategies.

In fact, studies from RIAA show that up to 90% of investors believe the significance of sustainable investing will continue to rise, with decisions being based on measurable impact, mission alignment and financial returns.

So, not only is sustainable investing here to stay, but it’s becoming mainstream as the distinction between sustainable and traditional investing diminishes.

Get Advice

Want to know more about sustainable investment and what it means for you? 

Talk to the team at Calder Wealth Management, sustainable investment specialists. Call us on (08) 8373 3333 to schedule your free initial appointment. 

Written by Kerryn Shaw for Calder Wealth Management

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.