Ethical and Sustainable Funds Perform Better!

Photo credit - The Economist

Ethical and sustainable funds do better.  Why is this so?

UBS and The Economist have just put out their survey report study of how the major players (ie. 450 global super/pension funds) are changing how they decide to invest, and are shifting their investment strategies to include ESG.

Ethical and sustainable investing is now becoming mainstream! 

The study found that the COVID-19 pandemic:

• has put a greater emphasis on ESG* , especially the social element;

• Impact is important - people want to be able to measure the outcomes of their investment decisions using sustainability metrics - e.g. UN's Sustainable Development Goals, although it's widely acknowledged that there needs to be better consistency in reporting. [You can check out the recent Viva Ethical Money webinar which goes into this some more, here.]

• Demonstrated that ESG investments were resilient and performed better than traditional investments, for the 3 years prior to and during the pandemic.

What’s been the outcome? 

• The relationships that companies have with their investors and shareholders is changing.

• Now, major investors and retail investors (you) are looking for sustainable investments, and companies which commit to and stand by their ESG obligations):

  • for the opportunity to invest for superior financial performance, and

  • to achieve the positive social and planetary outcomes they are seeking, especially climate-related investments which include:

    • renewable energy and energy efficiency

    • adapting to and mitigating the effects of climate change

    • preventing and control of pollution

    • sustainable water, and

    • Wastewater management.
      

So, what you are wanting from your investments is important AND influential…Keep it up!  

Wanting more?

Here's the link to the Resetting The Agenda report from USB/The Economist. If you scroll down to the end of the page there's a great Video presentation about the survey results from The Economist's team.

As always, we are happy to talk to you more about your circumstances. Find out how you can get your money to work for you and what you care about. Schedule a time to chat with the Viva team by clicking on the CONTACT US NOW button in the righthand column. 

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