Have you ever wondered what will happen to our future generations as we are leaving behind a slowly dying Earth with so many people suffering due social, political and environmental problems? We are facing power crunch, global warming, poverty, deaths due to malnutrition, etc. These are not simple issues which can be dealt overnight. These are global issues which can be addressed only by the combined efforts of all humans. But one emerging field which has been gaining immense popularity in global scenario which can solve some of these issues is Sustainable investment or socially responsible investment.
What is Sustainable investment? “In its broadest sense, sustainable investing means including environmental and social factors in investment decisions. Doing so, through a variety of ways, can help investors meet their financial goals and bring about a more sustainable economy” Social responsible investment support sustainable economic development that enhance quality of life and safeguard the environment. Many institutions are setup to encourage investors and social entrepreneurs for innovating new approaches to achieve social and environmental impact.
Investors shouldn’t be always on the lookout for heavy profits, there is another side of the coin which is being socially responsible. Some of the key points that investors should keep in mind before plunging their money is: 1. Invest in projects that contribute positive benefits to the society 2. Not to go for projects which cause damage to environment or people in any way 3. Companies that use clean and green technology are to be considered 4. Institutions that are setup to provide financial instruments for the low income individuals and small business are also ways to invest
International Finance Corporation (IFC), a member of the World Bank Group and The Financial Times have launched the world’s leading awards for banks and other financial institutions that demonstrate leadership and innovation in integrating such environmental, social and corporate governance considerations into their business. These awards reflect the growing role that the financial sector plays in addressing some of the world’s most pressing challenges, including climate change and environmental degradation, social exclusion, food security, improving access to finance, and using technology to better serve the world’s poor.
Many such events are organized to encourage socially responsible investing. Many social entrepreneurs are emerging in areas like power, finance (microcredit), health, education, etc but are not growing due to lack of capital. Only investing in such ventures will regenerate life on Earth. Not only huge investors but a common man can do sustainable investment by buying environmentally and people friendly products. Sustainable investment, an investment worth doing for a better life and a better future.