Why You Should Invest Sustainably Today

• Investing sustainably is seen as the future in finance

• ESG funds are outperforming the S&P 500 in these uncertain times

• Sustainable funds are being used to mitigate risks

Sustainable investments have been gaining momentum in recent years as people have realized that investing in these funds is providing increasing returns and impacting the world in a positive way. However, even in 2020, a tumultuous year by anyone’s standards, these funds have continued to grow and there are many reasons behind this development. 

The Future of Investing

ESG funds have been around for decades, however, they have gathered steam and are now a mainstream investment. According to JP Morgan, investors and shareholders are moving towards sustainable investments in record numbers. In fact, many sustainable funds have been launched in 2020 alone and many companies are trying to be included in this new investment category. 

ESG Funds Perform Strong in 2020

In the first half of 2020, one survey found that 72% of ESG funds outperformed the S&P 500. Another survey also found that 53% of people invest in ESG funds solely for performance and investment gains. Many investors are beginning to angle their investments to include greater ESG factor representation. These trends are only expected to rise as regulations and returns on investment increase. 

Resilience in the Face of COVID-19

The best run, most sustainable companies will perform well in any environment. This line of thought appears to be true as ESG funds have been less volatile throughout the Coronavirus crisis. Risk management has become a greater consideration for many sustainable companies, and COVID-19 has made risk management an even more important element of investment considerations.  

Sources:

 4 Reasons To Take Another Look At Sustainable Investing In 2020

Fifth annual responsible investing survey

Sustainable Stock Funds Held Their Own in Second-Quarter Rally