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I first met Moira Hutchinson in 1987 when I was working on the first of my series of books on responsible investment. She was generous with her time and provided a wealth of insight into “ethicalinvesting,” as responsible investing was known then. . It must be addressed by changing the economy.
Here are a few of the outcomes that contribute to a company's long-term sustainability and competitiveness. Reduced cost of capital Sustainableinvestments often attract a broader base of investors, including socially responsible investment funds and individuals looking for ethicalinvestment opportunities.
Responsible investing has been around in one form or another for quite some time. Pacifists may choose not to invest in companies that manufacture weapons. Environmentalists may choose to invest in companies that produce durable products from natural materials. In fact, ESG investing grew 143% between 2016 and 2020.
They can also lead in the adoption of best practices, such as governance, transparency and ethicalinvestment. However, investing in social sustainability has several challenges, including difficult geopolitical environment in many countries, as well as a perceived lower rate of return and higher risk.
Responsible investors and arms manufacturers need a level playing field which can only be delivered through risk-based human rights due diligence legislation, based on double materiality […] and backed by civil liability, Bloomer said. They have called on the finance sector to treat weapons manufacturers as ethicalinvestments.
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