Sustainable investors consider the long-term consequences of business actions on a social, economic, and environmental level. The idea is to produce goods and services that maximize profit and positive impact, all while minimizing social and environmental consequences, now and later on. All of these points can be simplified by, “what goes around, comes around.”
A sustainable company can run for a while without causing issues that lead to more significant problems in the future. In the end, the company, and the society it touches, both benefit. Companies that genuinely treat everyone well may go into sustainable profiles as possible investments. The companies that can maintain sustainability, with positive effects on humanity over time, are likely to win out from the idea of “what goes around, comes around.”
To create a sustainability portfolio, the social and environmental influences must be considered in conjunction with the business’s positive economic impact. Only businesses contributing more good than bad should be considered. To be a sustainable investor, you want to invest only in companies contributing more societal good than harm.
Review the information below to learn more about the importance of rewarding ethical companies using sustainable investing.
Not All Consequences Are Equal
To quantify a company’s human impact, consider the economic influence of the company and how its actions have affected humanity. Compare the good and the bad impacts the business generates, and decide which side is more significant. Whenever the bad outweighs the good, you can know that this is not a business to include in your sustainable profile.
A business’s sustainability is determined by the types of consequences it generates, and how these negatives compare to the positives the company also contributes. A company that produces air pollution, a byproduct that contributes to climate change, global warming, illness, and death, outweighs the fact that it also provides energy to grow crops and keep the lights on in hospitals. In this example, the negative environmental impact the company creates, outweighs the positive impact it creates for the environment and society. A company like this should not be included in a sustainable investment portfolio.
Sustainable Investing: Good For Business And Society
By relying on sustainable investing, only those doing the most good should be selected for investment. Consider the karmic impact that companies are generating for society and for business. When a company creates a significant negative impact on society, it won’t remain profitable for long. In this way, sustainable investing is both an act of social responsibility and good business.
Let Everyone Win
By rewarding ethical companies by practicing sustainable investing, investors ensure that the most social, environmental, and economic good is preserved for the long-haul. By opting out of investments with companies that produce a significant, negative human impact, profitability and social wellbeing are protected.
Protect Businesses And Society
A company that will produce a short-term positive impact but, ultimately, severe consequences will not last long. Practice sustainable investing to invest only in those businesses that will sustain positive impacts on humanity.
