The Rise of Sustainable financing
Sustainable finance looks to align financial investments with environmental, social and governance (ESG) concerns and is growing. Investors are recognizing the importance of sustainability and the potential for long term financial returns.
The rise of sustainable finance started in the 90’s when socially responsible investing began as a movement. It focused on avoiding investments in companies that are engaged in harmful activities such as firearms, fossil fuels or tobacco. In recent years, instead of simply avoiding harmful investments, investors are actively investing in companies that are committed to ESG goals. This can involve investing in renewable energy, sustainable agriculture, etc.
The main driver for the rise of sustainable finance has been increased awareness of climate change and several other climate issues. The Intergovernmental Panel on Climate Change (IPCC) has issued several reports showing the urgent need for action to reduce the impacts of climate change, which has increased the demand for sustainable investments.
Investors are also noticing financial risk in companies associated with climate change and other sustainability concerns. For example, companies that are deeply invested in fossil fuels may face significant risk because governments are looking to transition to renewable energy sources and regulate emissions. It has been proven that Millennials and Gen Z values are connected to ESG investing preferences, which is leading to more sustainable investing.
Overall, the rise of sustainable finance represents a positive trend. The Annora home wind turbine is a great example of an investment that is sustainable that will provide financial benefits in your future!
The rise of sustainable finance started in the 90’s when socially responsible investing began as a movement. It focused on avoiding investments in companies that are engaged in harmful activities such as firearms, fossil fuels or tobacco. In recent years, instead of simply avoiding harmful investments, investors are actively investing in companies that are committed to ESG goals. This can involve investing in renewable energy, sustainable agriculture, etc.
The main driver for the rise of sustainable finance has been increased awareness of climate change and several other climate issues. The Intergovernmental Panel on Climate Change (IPCC) has issued several reports showing the urgent need for action to reduce the impacts of climate change, which has increased the demand for sustainable investments.
Investors are also noticing financial risk in companies associated with climate change and other sustainability concerns. For example, companies that are deeply invested in fossil fuels may face significant risk because governments are looking to transition to renewable energy sources and regulate emissions. It has been proven that Millennials and Gen Z values are connected to ESG investing preferences, which is leading to more sustainable investing.
Overall, the rise of sustainable finance represents a positive trend. The Annora home wind turbine is a great example of an investment that is sustainable that will provide financial benefits in your future!