When we talk about lifestyle, it doesn’t necessarily focus on just your habits at home. It is an extremely broad topic that covers food, fashion, travel, etc. An unknown aspect that isn’t really talked about is investments and money. The way you spend and invest your savings also hold accountable to how sustainable you are on a daily basis. To be completely candid, this is completely new territory for me as I have never studied or read about investments or put my savings into any. So, while I write this, not only will I be sharing tips on sustainable investments but learning quite a bit about this too.
What is Sustainable Investing?
This kind of investment focuses on following practices that not only provide a financial return but also promote long term environmental and social values. Investors have started making better investment decisions based on environment, social and corporate governance insights (ESG). The major benefit of a sustainable investment is the fact that the focus isn’t solely on short term gains but also on the broader picture of how their decision could affect the society. Each individual factor of this kind of investment looks after a specific sector in the world. The environmental factor looks over the company’s impact on the surrounding like carbon footprint, clean technology, etc. The social factor aims to improve social issues and rights and focuses on how the company is involved in making a positive impact on the society. For instance, employee health and safety and community involvement. The last factor, governance, sets eyes on the way a body/company is governed. For example, the quality of management and shareholders rights.
What are the top green companies in the Climate Space?
Zach Stein, a climate change-focused online investment advisor and the CEO of Carbon collective, recently released an article talking about the benefits of investing in climate-focused companies and the climate tech space. Climate change and global warming is a solvable and controllable problem as long as the globe moves towards investing 5-10 times more into companies that are able to come up with these climate solutions. These investments benefit the companies making them move faster towards their goal and also proves the point that sustainable investments aren’t just charity and that it actually helps to work towards the final opportunity.
What are Green Pensions?
Several people in the UK receive private pensions but have no clue where to invest that money. Financial companies across the country help these people to invest their pensions in a smart, sustainable, and green manner – hence, the term “green pensions.” Here at greenmarket, we have partnered up with Path Financials, a group of leading ethical financial experts, that assist individuals with pensions, investments and financial advices that would help create a more sustainable future. Path Financials prefer investing in companies that promote climate solutions like Orsted (an electric utility company that uses renewable energy instead of fossil fuels) and Tomra (a company that has improved recycling rates with vending machines).
Phew, that was quite a lot of technical terms on one page. Who knew that the world can be helped in every possible angle available. I think it is time to stop procrastinating and blaming factors around us that are responsible for climate change and have a look at what we can do as an individual. Next time you or your parents or your friends decide to put their money into stocks or investments, suggest a climate space company. Can you think of any other place you could spend your money wisely that would help make the world a better place?