Sustainable investing is a hot topic at the moment. Climate change and other issues means that people need to think more carefully about where they are putting their money. As a result, many are choosing to invest wisely. From this, two camps can arise – eco warriors and moderate greens. Let’s take a closer look at both.
Moderate Greens
Moderate Greens are not too dissimilar from a traditional investor. They obviously care about the environment or some aspect of sustainability, but it is not their 100% focus. When searching for projects to get involved with, they will often look for ones in which they can still prioritise their own returns.
As a result, it is quite common to see most investors follow this route. They want to find investments that are sustainable and ethical in some way. However, they do not necessarily have to be a project that is going to change the world. Making money is the main objective here, as it is for many investors, and moderate greens will only want to invest in those businesses that are going to make good on their returns whatever they might be.
Eco Warrior
At the other end of the scale are the eco warriors. These are the investors who want to see their money used for projects that have sustainability at their core. Many figures throughout various industries are beginning to go down this path. You will find investors and philanthropists such as Tej Kohli or Mark Carney all interested in this investment avenue over the paths offered by moderate green opportunities.
As an eco warrior, there is a distinct emphasis on choosing investments that prioritise sustainability over returns. While returns are important – as they allow future investments while also showing that the company itself is thriving – the emphasis should always be on choosing projects that are truly sustainable with the potential to change the world.
Which is Best?
Both paths have their own merits, and both should be considered for investors interested in sustainable and ethical investing. At a minimum, more should be prepared to engage with sustainable investing on the moderate green path.
Just as we are encouraged to make more careful choices in our daily lives, so should we be encouraged to do so when investing. There are so many small changes that can be made when choosing investments that could result in a more sustainable portfolio overall.
For those who really want to make a difference with their money, there are also many opportunities available for eco warriors. Anyone who wants to put their name to some of the biggest chances to alter our world through ethical and sustainable investing is going to find plenty of projects to interest them.
It is high time that we all began to think a little more sustainably in terms of how we are spending our money. From investors down to the average consumer, voting with our dollars can have a massive impact on our futures.