No liabilities wanted
Investors consider sustainability aspects in their investment decisions, as environmental or social risks can be a liability for companies. For mid and long term returns it is important to minimize those risks.
Responsible Investment needed
Secondly, investors have become more sustainable themselves and often subscribe to the UN principles for responsible investment. Also the financial crisis has magnified the responsibility of financial institutions in sustainable growth. Banks and other investors have to put a lot of effort in winning back the trust of their clients.
Follow the money
Last , but not least: the data shows that money flows to sustainable initiatives. Of every nine dollars invested under professional management in the US more than one dollar goes to socially responsible investing, according to the USSIF. In total that’s $3.74 trillion invested in companies that are considered to be sustainable and responsible.