In recent years, we’ve seen a significant shift in the world of investing, with more and more people looking to align their financial goals with their personal values. This has created the space for us to engage with sustainable investing, also known as socially responsible investing (SRI) or environmental, social, and governance (ESG) investing. This approach is all about putting your money where your heart is and making a positive impact on the world while still achieving your financial objectives.
And for those of us who are lucky enough to live in different countries and continents along our journeys, we can find our hearts full of many different cultures and opportunities to support.
So, what exactly is sustainable investing? In a nutshell, it’s an investment strategy that considers not only financial returns but also the social and environmental impact of the companies we invest in. This means looking for businesses that prioritise things like renewable energy, fair labour practices, diversity and inclusion, and responsible corporate governance. By investing in these companies, we’re essentially voting with our dollars and supporting a more sustainable and equitable future.
Now, I know what you might be thinking: “But won’t I have to sacrifice returns if I invest sustainably?” The good news is that’s not necessarily the case! In fact, studies have shown that sustainable investments can outperform traditional investments over the long run. Why? Because companies that prioritise ESG factors tend to be more resilient, innovative, and better positioned to thrive in a rapidly changing world.
And – it helps with diversification.
Of course, like any investment strategy, sustainable investing comes with its own set of challenges. For one, there’s no one-size-fits-all definition of what makes a company “sustainable,” so you’ll need to do your homework and decide what matters most to you. There’s also the risk of “greenwashing,” where companies may exaggerate their environmental or social credentials to attract investors. That’s why it’s so important to work with a trusted financial advisor who can help you understand these complexities and build a truly sustainable portfolio, tailored to your unique needs and goals.
When we work with clients who want to bring more of a sustainable investment element to their portfolio, the first step is to identify your values and priorities. What issues are you passionate about, and what kind of impact do you want to make with your investments? Once you have a clear sense of your goals, we can start researching companies and funds that align with those values.
At Northern Cross Wealth Management, we’re big believers in the power of sustainable investing. We work closely with our clients to understand their unique values and create customised portfolios that reflect those priorities. Whether you’re passionate about renewable energy, social justice, or responsible corporate governance, we can help you build a portfolio that makes a positive impact while still achieving your financial goals.
So, if you’re ready to join the growing movement of conscious investors and put your money to work for a better world, give us a shout. We’ll work with you to create a sustainable investing strategy that aligns your values with your financial future. Let’s make a difference together, one investment at a time!
