Why Investors Should Consider the Scale of Sustainability

People around the world are increasingly concerned about sustainability. As such, investors need to keep it in mind as they make investments, as it strongly affects the future. 


This trend is already well on its way, with 85% of those who invest individually showing an interest in sustainable investing. Globally, 25% of invested dollars follow some type of sustainable investing. 


The Role of Data


There is a trend toward using data to better gauge how sustainable investments are. That data lets investors make better long-term decisions that focus on sustainability as well as profits. 


What Affects Sustainability


There are numerous variables that go into sustainability. These include water consumption, consumer trust, data privacy, land use, conservation, and diversity. 


Those variables help show that the definition of sustainability in investing is not just focused on the “eco-friendly” version of sustainability. It also refers to the social aspect of it, as in the ability to ensure that future generations will be able to survive as well. 


This falls in line more or less with how the Brundtland Commission of the UN defines sustainability. They say it involves meeting our needs in the present without hurting future generations’ ability to meet their needs. 


Sustainability Also Results in Long-term Investments


The fact that a sustainable investment doesn’t place limitations on future generations is also good for investments. As a side effect, it improves the chances that a sustainable investment is a solid long-term investment. 


Investors Have Power


Because sustainability in investing is a priority on such a large scale, it shows that investors truly have power. They can make investments based on what people care about, and that will influence the industries to become more sustainable and focus on those issues to encourage investment. Essentially, when investors look at the scale of sustainability, they get a better idea of the power they have to make change. 


Overall, investors of today should consider how they can make an impact with their investments—not just in financial terms, but also in regard to the world at large and future generations.