Type of paper:Â | Essay |
Categories:Â | Management Finance Money |
Pages: | 6 |
Wordcount: | 1464 words |
The sustainable investment experts are continually working to change the traditional mentality of investors, of seasonal business investments. They continually help the investors in taking into consideration the effects of irresponsible investing and the advantages they will reap from making sustainable investments on the contrary. They have included the ESG considerations in making business considerations while investing and encouraging advocacy for positive impact on society and long-term returns financially.
The experts have done so by coming up with new ideas of businesses in the form of business opportunities and services that have already taken into consideration these aspects. The experts have made sure that the opportunities and services offered are attractive enough to investors who seek both short-term and long-term returns. This applies for both individuals and institutions, making these very competitive as they provide help to address the challenges facing them socially and environmentally.
The environmental and social issues also have to be kept in mind when a company considers investment since these business environments have a huge impact on the success of a company. With the environment being an important factor in the survival and growth of a company, sustainable measures must be taken in order to prevent the destruction of the environment and ensure that will be available for utilization by the company in the future. Natural resources provide the raw materials for most companies and therefore it is imperative to ensure continuous supply of the raw materials from the natural environment for instance, trees which provide timber for companies such as paper and pulp and the timber factories which heavily rely on forests as the raw material.
The natural resources are also non-renewable and therefore care must be taken to ensure that continuous supply of trees is maintained in order to sustain the operations of the company. The environment is also the source of energy for many companies with the sun and other resources such as water providing the energy which is required to run the activities that take place in those companies, for example processing and manufacturing companies heavily rely on energy which is used in the running of the machines. Sustainability investment in environmental use and management involves the adoption or the modification of sources of energy in order to ensure that their presence is maintained even as time passes and the demand for energy increases immensely for example some of the manufacturers or food processors still rely on trees for the provision of energy which is perilous to the sustenance of the activities. Other companies have shifted towards other sources of energy such as biogas and solar which are non-renewable and comparatively cheaper thus having competitive advantage over other firms in the operational costs. Other companies are also using energy efficient methods of production in order to reduce their expenditure on energy. This is part of sustainability investment which definitely has a very huge impact on the survival of the company. The need for energy is growing at an alarming rate since as the population increases, the sources of energy reduce thus the demand is greater than the supply which may lead to the death of companies that will not embrace favorable sources of energy for example many companies embraced sustainable investment when they eliminated coal as a source of energy.
Sustainability is the commitment people make towards making rational decisions economically, socially and environmentally, taking into consideration the present and the future. It involves making use of tools and technologies that are keen on the wellbeing of the future effects, as well as coming up with strategies that do the same concerning business. All these tools are supposed to be used in a collective way to help achieve benefits in all aspects pertaining to them. Sustainable investing is view as the effort of investors evaluating these values in the businesses they are interested in before making the move to invest. If they pass, then they go ahead and invest.
Sustainability in investing can also be described as the capability to maintain and continue with a particular behavior over a long duration or period of time, in most cases indefinitely. In the finance, the term sustainability has been used in various contexts, but all sum up to one main objective description. The term has been used interchangeably to describe how the various aspects of social, environmental and ethical factors are incorporated in the management of funds used in investment. Among these factors, they are broken down to specifics in terms of the fields they are involved in. At this point the terms, ethical investment, responsible investment, green investment, socially responsible investment amongst others come into play.
Basically, they are all aimed at integrating business with the surrounding and the future. Making sure that people make considerations of the future generations when they seek to invest. The objectives is to make a connection between the investors and their financial goals, with the obligations to social justice, a healthy environment and social-economic development. It is the way of raising concerns of the mentioned factors for investors.
Social sustainability investment is also important in order to ensure the survival and success of a company. This is because the relationship between the company and its customers is important for the survival of the corporation. This is the reason why many companies value their customers and such misconduct that may draw away customers by employees may even lead to one being sacked. As a company considers investing, it must also take care of the impact that it will have on the social environment such that it will not negatively affect the company but instead boost its performance in its operations. Many companies have also integrated corporate social responsibility in their operations in order to build a good social image that will make them retain their existing customers and even be able to attract new ones in this competitive world.
Corporate social responsibility involves taking initiatives which benefit the society especially those who are disadvantaged. Many companies have invested in projects and initiatives which give back to the society for instance starting projects that promote education or the growth of societies that have been sidelined for a very long time or have felt that they have been ignored by the central government for a very long time CITATION Car11 \l 1033 (Cary Krosinsky N. R., 2011). Initiatives which have been started by certain companies have also been the reason why they have been able to survive in the competitive corporate world.
It requires a lot of input in the research field in order to come up with methods and ideas that will ensure a corporation remains in operation. It involves flexibility of not only the management of a company but also its employees. The whole team needs to be able to adopt to the changes that are taking place in the corporate world be able to put in place strategies that are in line with the global trends.
Sustainability investment has come about as a result of the need for integration of new emerging trends in order to cope up with the changes that have been taking place in the corporate world. In order for a company to succeed despite changes in its market, it has to integrate sustainability investment which ensures that the firm continues with its production activities and in a way that is favorable for the growth of the firm.
Sustainability investment has an effect on the capital markets by boosting the trade that takes place. This is because as a company invests sustainably, it is able to survive and consequently grow which means that the capital needed in order to maintain the operations of the company such as labor expenses, expenses on the raw materials and other operational costs such as rent. This implies that the companies will advertise their shares more in exchange for equity thus increasing their level of participation in the capital market. Sustainability investment requires more funds in order to keep up with the changes that take place in the business world thus assuming that the company maintains the same source of funds before sustainability investment, it will therefore have to advertise more of its shares traded at the capital market thus the level of trade taking place. Sustainability investment also maintains or increases the level of trade that takes place at the capital market since the firms or companies that invest sustainably are able to survive in their areas of specialization which makes the level of trade of shares at the capital market either remain the same or even increase due to the emergence of new firms which may also advertise their shares for an exchange of equity at the capital market. With the number of companies ceasing their operations due to other factors other than...
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Free Essay on the Sustainable Investment Experts. (2019, May 17). Retrieved from https://speedypaper.com/essays/the-sustainable-investment-experts
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