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The Comprehensive Impact of Sustainability Investment Portfolio

Aug 11, 2023
3 Menit

The urgency of climate change has become increasingly apparent, which is why green investment or sustainable investment has gained popularity among investors. Essentially, green investment means investing wealth in companies that adhere to ESG principles (environmental, social, and corporate governance). In other words, your investment supports environmental preservation initiatives and long-term community empowerment.

Here are several benefits of a sustainable investment portfolio and its impact on overall well-being.

Reducing the Effects of Climate Change
Non-renewable energy sources and difficult-to-recycle raw materials contribute to carbon emissions, resulting in an increasingly warmer climate that threatens our survival. On the other hand, a sustainable investment portfolio can contribute to mitigating climate change and global warming impacts. With funding from investors, companies are motivated to develop environmentally friendly policies, such as transitioning to renewable energy for their operations or eliminating single-use materials.

Supporting Social Development
Green investment not only focuses on environmental sustainability but also considers whether a company's policies positively impact the surrounding community. When you build an investment portfolio with stocks of companies that prioritize social responsibility, you support workers' rights, infrastructure development, public health, and long-term empowerment. As a result, the local community will progress and remain competitive in the ever-evolving digital era.

Strengthening Long-Term Financials
A green investment portfolio can provide you with long-term financial benefits. Why? Because market indexes that prioritize sustainability have higher growth rates and dividend yields since they prioritize innovation for the future. Additionally, green companies that prioritize ESG must comply with policies of information transparency and implementation oversight, resulting in lower risks and volatility.

Encouraging Eco Friendly Innovation
With sufficient funds from investors, a business will be motivated to have environmentally sustainable policies and implement them effectively. They will be better able to create tangible innovations, such as developing specific technologies or business models.
In addition to generating financial returns, a sustainable investment portfolio also supports the adoption of clean renewable energy and community empowerment. Have you started your green investment yet?

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