25 Reasons to Consider Investing in Green Sustainable Companies

The case for sustainability in investment research has become stronger over time. Sustainable investing involves taking into consideration environmental, social and governance factors as part of research to identify opportunities and invest for corporate citizens. ESG investing is a personal investment. However, there are common themes that investors share. These include environmental protection, labor relations and social equality, as well as community development and corporate sustainability. Sustainable investment has its roots in 17th century faith communities. Businesses were challenged to adopt financial structures and business models that demonstrated resilience and sustainability.

Why Invest in Sustainable Companies

The market for sustainable investment has evolved from a niche to a mainstream segment, based on the evidence of cumulative benefits of investing in environmental, social and governance factors. The trend of responsible, sustainable investing, or investing to make the world better, continues to grow. This is due to consumer demand, and to the recognition that sustainable funds provide returns that are comparable to traditional funds, and that they reduce risk. Morningstar reports that a net of $20.9 billion was invested in sustainable funds during the first half 2020. This is more than 2019. This is a trend that will continue. The Forum for Sustainable and Responsible Investment in the U.S.

What are ESG Investments?

ESG investments are sustainable investments that take into account environmental, social and governance factors when assessing financial returns and overall impact. ESG investments evaluates investments using specific criteria in order to determine their sustainability. This new generation of sustainable investments is based on a focus on ESG issues, the impact of business assessment, and material ESG concerns, such as greenhouse gas emissions, materials used in utilities, and supply-chain management materials by clothing companies who use cheap labor from developing countries.