Responsible Investments: The new normal
|The investment landscape has evolved. In particular the focus and care taken to putting together a portfolio. Now an increasing consideration is placed on the companies’ social impact; aspects of their environmental, social, and governance practices, are important factors to whether investor criterias are met. |
Socially-conscious investors will pay attention to your CSR practices as well as your public responsibility – whether it would be health and safety reports, employee relations, sustainability ratings, and more. In the past, sustainably-minded firms have generally been able to withstand industry shake-ups better, overall improving their share prices and yielding better returns. More, in the age of social media and information transparency, paying attention to environmental risks is emphasised even more.
Green companies may not be raking in the cash now, but they are more likely to outlast sudden industry shake-ups, such as new pollution regulations or consumer-driven demand for eco-friendly products, which we see increasing with every year.
Companies that do not prepare for these changes are likely to lose out in the long run, which becomes particularly tricky as currently there are no clear requirements to report social performance information. Doing this is likely to be your voluntary practice, nevertheless, a crucial function.
If you’d like me to help you strategise your next move, we would love to get in touch.
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