Sustainable investing seems to be one of the most popular pathways for ethical individuals looking to make a difference in our world.
And it’s more than just a “trend” with 90% of Australians believing sustainable investing is important.
Driven by several factors, including the growing impact of climate change and increasing regulatory oversight of areas such as governance, socially aware investors are exploring opportunities within the sustainable investment space.
Sustainable investing is an important and growing element for the investors of Australia.
The investment strategy has practically doubled, especially over the last decade or so. AUM (assets under management) in the wealth and asset management industry are actually slowly but surely seeing a bigger chunk of this investment strategy.
What is Sustainable Investing?
Sometimes referred to as socially responsible investing, sustainable investing is when environmental, social, and governance (ESG) factors are woven seamlessly into decisions that involve investments.
Individuals that take on sustainable investments tend to put their money into companies, organisations, and funds with the end goal of getting measurable and positive impacts on the environment with their return on investment (ROI).
The overall impact it makes will hit through many different sectors: climate change, renewable energy, health, community development, and even national safety.
People can make better, more informed investments based on their personal priorities or values. Sustainable investing tends to screen companies and industries, bringing many to choose value alignment over bigger ROIs in certain cases.
However, positive screening of risk factors (the aforementioned ESG) has been more at the forefront based on trends. It’s led to an investment approach that helps performances that end up outperforming average industry benchmarks.
Financial returns aren’t the only key benefit from sustainable investing opportunities being provided. Another option is seeing returns on an intrinsic scale that are not otherwise seen on a different aspect.
Key Takeaway: Sustainable Investing Is the Future
Sustainable investing (a.k.a. socially responsible investing) is when environmental, social, and governance factors are non-negotiables for investing. Investors of today are placing more importance (and more of their funds) on value-aligned investment options.
Are you looking to take on sustainable investing in Adelaide? Reach out to Novo Wealth today!
We’re the ethical financial advice specialist for professionals and business owners alike looking to invest in companies, strategies, and industries that wholly align with their socially responsible values.
Let’s chat! Contact us here.
