Why is it important to invest sustainably with good returns?
Yesterday the British Chamber of Commerce held a BNP Paribas Fortis function that demonstrated to all in attendance the growing interest in sustainable investments.
Presented by Valérie de Gheldere of BNP Paribas Fortis, she guided the audience through the reality of the changing nature of the world, the challenges, and potential it creates.
“Who is leading the way for investment in renewable energy?” de Gheldere says, “China“.
Having lived in China, de Gheldere saw first hand the damage of companies divorced from societal needs. Being a socially responsible investment specialist, she examined the steps China and other countries are taking in investing in new markets; making her a great source to help understand the growing trends.
But it’s not just developing countries, water infrastructure posed opportunities, even in Europe, showing that this idea of sustainable investment not only pertained to emerging markets like China, Russia and Brazil, but also in the west, too.
Other elements of the event showed how western companies are also beginning to shift their portfolios to companies that meet ESG requirements. Dealing within countries that are not as stringent on health and safety or pollution, and choosing companies that reflect upon their worker’s rights, the impact of their business and the transparency in which they allow investors to see their dealings.
“We are facing a lot of issues, but we also have a lot of great opportunities. So we want to highlight this link for investors.” de Gheldere said “we are convinced that companies which don’t take ESG criteria into account have a higher risk in some ways, by being exposed to reputational risks, to scandals and they will be performing less efficiently in the changing world. So we are convinced for an investor that it is something that should be taken into account to improve the return of your portfolio”
These shrewd investments make not only for a more positive outlook for the investing company internationally but guide them into the path of new opportunities, helping contribute towards causes that aim to make the world better for all involved.
“Evidence suggests that renewable investment is a growing trend, one that will last for a very long time. We see governments investing in it, we see lots of successful companies joining in, so we think we should bring investors to look in that direction. you really have to be able to detect what will be the trend of tomorrow in this fast-moving world“