Issues like water pollution and climate change are just some of the factors that show how we humans have the biggest impact on our planet. As an investor, you might be wondering how you can help and make a good difference. In that case, you may want to learn about sustainable investing in the UK. This means you will be investing your money to make a better world, and an earn profit. You have that power through sustainable choices, and you can invest in a cause that matters the most to you, such as environmental pollution, animal welfare, and gender equality.
One of the important things you must know about sustainable investing in the UK is that it is not niche. As sustainability continues to be relevant in the world of investing, discerning investors want to know how their money is being used and where it’s going. That said, it’s important to invest in something that aligns with your values.
There is more to sustainable investing beyond saving the world and making a profit. Here are more benefits:
Also known as ‘socially responsible investing’, sustainable investing incorporates ESG (environmental, social, and governance) factors into your investment decisions. By investing sustainably, you are investing in organisations, funds, and companies to generate measurable environmental and social impact, along with financial returns.
Sustainable investing in the UK lets you pick investments according to your own personal priorities and values. Investors use positive screening on ESG risk factors to find a suitable investment approach that can generate performance, while making sure that it is in line with market benchmarks. In some cases, performance could even exceed the benchmarks.
This method of investing may help drive market growth. As the population continues to increase, the global demand for energy, water, and food, is expected to encourage the need for innovative solutions to improve infrastructure and meet the demand for resources. Investing in a company that is looking into plant-based nutrition sources and environmental-friendly alternatives to traditional meat production could provide you with a good opportunity to get started with sustainable investing in the UK.
About the Author:
Agronomics (LSE: ANIC), the AIM-listed investment company, remains the only UK based vehicle that provides the public with an opportunity to engage in a sector which is likely to become the future of our food. August saw Agronomics participate in BlueNalu’s latest fundraising round following the announcement of their First-of-its-Kind Commercialisation Strategy. When Jim Mellon and Anthony Chow return from attending the Good Food Conference, I am sure the September buzz for this hot sector will continue.
