Why Sustainable Investing Matters to Your Finances

posted on Monday, September 25, 2023 in Financial Tips

In our modern world, investing is more than just making profits. We now have this investment philosophy called sustainable investing, also known as socially responsible investing (SRI) or responsible investing. It is an investment approach that considers environmental, social, and governance (ESG) factors in addition to financial criteria when making investment decisions.

This philosophy aims to help increase your financial gains while making the world a better place. In this blog, we will be discussing how this type of investing can help you reach your financial goals.

Benefits of Sustainable Investing

Because it also incorporates other factors that can impact society and the environment, sustainable investing can offer you benefits beyond simply maximizing your profits. Here are a few examples:

• Positive Impact on Society and the Environment – Sustainable investing empowers individuals to support projects and companies that drive positive change. It allows you to align investing decisions with causes you value and support, like climate change mitigation and fair labor practices.

• Lowers Potential Investment Risk – There’s a chance that you, as an investor, will have a decrease in your investment risk. That’s because you’re effectively avoiding organizations that are vulnerable to regulation changes. It may also protect you from those with poor corporate practices that will severely affect your bottom line in the long run.
• Drives Innovation – Sustainable investment has the advantageous impact of fostering innovation to address societal challenges. Backing startups and companies focused on developing technology with long-term benefits for humanity promotes positive change for everyone. This, in turn, creates new markets and opportunities for future progress.
• Promotes Collaboration Between Organizations – As industries that promote positive change grow, it’s important to stay informed on emerging trends and practices. One way of achieving this is by collaborating with other organizations that support sustainable investing initiatives. By fostering continuous collaboration, the industry can thrive and achieve long-term success.
• Encourages Sustainable Behavior – Sustainable investments can serve as the catalyst for more businesses to adopt more socially conscious business practices. Companies prioritizing social responsibility can attract more investors, leading to increased growth. That encourages businesses to evolve towards greater sustainability.

As you can see, sustainable investing can help you and society. If you need help with investments, Community 1st Credit Union is here for you. Talk to one of our C1st representatives today to learn more about how we can assist you in reaching your financial goals.