The economic downturn due to the recent events of the pandemic revealed all the critical problems in society that need to be addressed, including recognizing how one’s actions can impact the rest of the world. As both budding and larger-than-life companies strive to keep the lights on and come out of this uncertain moment in time stronger than ever, the need to make responsible decisions extend to different facets in the business world.
Part of the progressive causes that can leave a positive impact as a business mogul is to build wealth through socially conscious banking, wherein you can grow your portfolio by making sustainable investments. As an investor, investing wisely doesn’t cut it anymore—people also want to put where money where it matters.
What is Sustainable Investing?
It’s one thing to pave the way for your future financial wellness through investing, but aside from generating profits in the end, sustainable investing encourages you to support the right funds that align with your values. Just like any other sustainable efforts throughout different niches, becoming an eco-conscious investor involves three conditions:
- Economical – One of the biggest pillars behind sustainable investing is its part in propelling economic growth.
- Environmental – The promise of adding more O’s to your portfolio seems tempting, but sustainable investing is all about supporting organizations and funds that don’t harm the environment in any way.
- Social – Instead of limiting your profits within your accounts, sustainable investing should also expand to matters that affect other people. If there are any social issues linked with your investments, it could put your company at risk, especially if future laws can hurt your gains down the line.
The factors above serve as reference points when deciding what makes an investment worth your money. Aside from thinking about whether the investment will pay back your efforts two-fold in the long run, the big question is if the investment has a role to play in building a better future for everyone.
Some recent examples of sustainable investing include the following:
- Larger-than-life financial organizations are now encouraged to stop lending and investing within the tobacco industry;
- Pressure to stop investing in unethical farmers who perpetrate animal cruelty and environmental degradation;
The Bottom Line: The Pivotal Role Sustainable Investing Plays in Pushing Industries Forward
Doing your part to help the world heal in some way or form can do wonders for encouraging social and environmental change—be it to support ethical farmers or buy organic and cruelty-free products, and more.
As someone who wants to impact your financial choices, placing your money in investments that are both profitable and sustainable is key. The pillars mentioned above loosely defines sustainable investing since it covers the big three: economic, environmental, and social, but it’s up to you what sustainability truly means. Diversifying your portfolio is the key to exploring how you want to become a progressive investor.
Are You looking for Financial Advisers on the Gold Coast?
Managing your finances can be daunting in more ways than one, especially since life’s uncertainties can easily throw a wrench in your budgeting plans. Whether you need to build your wealth through sustainable investments or other finance tips and tricks, New Wave Financial Planning can give the best financial advice on the Gold Coast.
We believe that wealth is best measured in the quality of life, so get in touch with our financial advisers today at 07 5504 1999 to see what we can do to help you achieve financial wellness today and beyond.
