While many AT&T employees once focused on short-term gains of churn and burn investment strategies, they’re well-advised to follow sustainable investment trends in wealth management creation. Specifically, like business communities, investment advisors, and their clients are embracing sustainability. Now more than ever, investors are moving towards a longer-term, more sustainable view of investing, for several reasons.
Why look to sustainable investments? Today the biggest investment firms, asset managers, and banks are all about corporate social responsibility and engaging in more sustainable practices in their own organizations and when pitching a “go-to” investment strategy for their clients. Today’s investors, especially millennials, want more from their investments—to make money, and to also make a difference. Sustainable, local investing projects are definitely trending in favor of larger companies that have a negative impact on their environment.
Where are these investment dollars flowing to? Exciting new startups and high-impact projects such as clean technology, renewable energy, and water-saving technology are catching the attention of wealth management firms and the investors they serve who are looking for ways to further our country’s transition to renewable energy. Says Maureen Kline of Inc. Magazine “As divestment from fossil fuels invariably picks up speed following the Paris climate change agreement, and more and more leaders call for carbon pricing to facilitate a transition to renewable energy, these enterprises will attract more attention from investors.”
As an investor, calling for responsible long-term decision-making also contributes to the long-term financial health of organizations themselves. Companies who put short-term profits ahead of environmental and social responsibility in the current climate run the serious risk of financial loss by ignoring regulatory and reputational risk. The good news—with more and more data available, your investment advisor can quickly identify and incorporate the value of natural capital into your portfolio to create a sound, long-term investment strategy for you.
We invite you to call Mooney Lyons at 1.847.382.2600 or visit us at mooneylyons.com. We can help you achieve a good balance between your retirement goals, your social interests, and your financial responsibilities.
Kline, Maureen. 9 Sustainable Investing Trends for 2016. Inc.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Socially responsible investments may be subject to greater volatility than one that invest more broadly.