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Investing in a sustainable future

Updated: Nov 24


Duc from Vision Factory

Author: Duc Huy Nguyen

Connect with Duc

Date of Publication: 08/04/2023





Sustainability is a concept that has been gaining attention in recent years. Apart from that, it's becoming increasingly important for businesses to incorporate and align themselves with Sustainable Development Goals (SDG goals).


More specifically, sustainability is a way to meet your current needs without affecting future generations to meet theirs. It looks at the long-term potential of a company instead of focusing on short-term gains. So, sustainable practices can help businesses become more efficient and reduce their environmental impact.


Empowering change

By investing in sustainable businesses, investors can help support companies that are making an effort to improve their sustainability practices. In fact, sustainable investing can help businesses become more environmentally conscious and in turn, help reduce the global environmental footprint. Therefore, sustainable investing is becoming increasingly popular and more accessible to everyday investors.


Sustainability

Why companies should incorporate sustainability in their strategies


A new upcoming world


The growing population of Millennials and Gen Z are more sustainable-minded than the

previous generations. This is according to a survey done by Nielsen. In particular, this

generational shift in attitude presents an opportunity for companies to increase their brand value. What’s more, they can gain a competitive advantage. So, companies that have incorporated sustainability into their business models and governance can see benefits in the long run


Another benefit that is shown by a study done by Nielsen indicates that customers are willing to spend more on a sustainable product. Many companies caught on to this trend and started to formulate their sustainability strategy. Thus, this is a long-term investment. However, not investing in a sustainable future might translate into a bigger loss in the long term. As the world is faced with overexploitation.


It cost less in the long run

Sustainability costs less in the long run

Companies that are formulating their sustainability strategy often identify ways to become more efficient. Not only can they reduce costs, but they can increase operating profits. In fact, they can do so, up to 60%, by identifying ways to lower energy and water consumption.


Improves shareholders relationships


More advantages to being more sustainable can mean improving your shareholders'

relationships. For example, this could be the local community and the government. Actually, this benefits you in return as you might obtain tax incentives and subsidies.


Furthermore, a company's sustainability attracts millennials to work for them. So not having a good strategy might result in the loss of future talents. Therefore, sustainability has many economic benefits for companies. So, investing in more sustainable companies might benefit your wallet as well.


 

Reference List


Why The Rock's Social Media Muscle Made Him Hollywood's Highest-Paid Actor


WHAT IS SUSTAINABLE INVESTING?


How seven companies help tackle the UN Sustainable Development Goals


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