Not long ago responsible and/or sustainable investing was a lot less popular. Many folks believed investing in that manner wouldn’t have positive returns and was best left to the “hippies.”
We’re seeing more and more that is truly not the case. Studies show that there is a significant rise in investing in products that benefit the environment and/or society as a whole. In fact, it appears that such products are performing as well as or better than investments with no sustainability focus.
In a recent piece exploring investing trends, CNBC explored the growing popularity believing it reflects “the wider global appetite for green investment products, commonly known as sustainable or impact investments…. a report published last month by the Global Sustainable Investment Alliance (GSIA) showed that socially responsible assets under management grew to $22.9 trillion at the start of 2016, 25 percent more than 2014. Such assets account for 26.3 percent of total managed assets.”
Research suggests global investors are increasingly aware of and considering ESG factors (environment, social and governance) when considering investment options.
Environmental issues continue to dominate headlines and legislation is constantly changing both domestically and abroad/ As investors turn their sights toward social responsibility while aiming to turn a profit, the asset class continues to grow. You can find the full article here.