The mayor of Rome Italy recently refused to back an Olympic bid for her city because as she said “we can’t even collect our own garbage.”
New Delhi India, has closed schools for a few days because the air pollution is seriously affecting its citizens.
Did you know that there are many jurisdictions in North America and the world do not recycle beverage containers as we do here in Alberta? For me it is painful when I travel to see these plastic bottles stuffed in garbage cans or blowing in the wind down the street, and I know my friends have said the same.
Economic progress and world population growth are impacting our planet in ways that could be irreversible if continued unchecked.
There has been a growing awareness of the fragility of our planet and that many of our resources that support our lifestyle are finite. The impact of human activity is evidenced in statistics such as the disappearance of wildlife and the ongoing California drought.
This awareness has created an interest and movement towards a type of investing called responsible investing. Historically, responsible investing was named ethical investing or socially responsible investing. In the past the emphasis was on avoidance of companies that profited from products such as tobacco, nuclear development and weapons manufacturing. Today these companies are focusing their investments on innovation in the areas of environmental health and safety, water management, energy efficiency and development of renewable energy sources, waste management and pollution control, and sustainable agriculture. One recent example is Adidas making running shoes out of waste plastic drifting in the ocean.
Investment companies that are participating in responsible and sustainable investing want their money to make a positive difference. It is more than a trend, it is a realization that for the future of our children and grandchildren to be as positive as ours that there must be wise stewardship of the planet’s resources and an ethical and equitable supply chain.
Investment companies that do responsible sustainable investing, can as shareholders play an active role in company policy, influencing a company in a positive direction in such areas as executive compensation, fair hiring practices and respect for stakeholders in resources development.
Just as importantly the catalyst for responsible investing has been institutional investors such as pension plans. These large investors are constructing portfolios that reflect longer term view of responsible sustainable investing. Now you and I can also participate in this important investment
As the world’s population continues to grow innovation must play a crucial role. Most of the world’s land is not arable land that crops can grow on. And creating arable by deforestation contributes to climate change and loss of biodiversity. As well, potable water is a finite resource, unless new technology can access water from alternate sources, such as the sea.
The Paris agreement is historic in that that governments have pledged to work together to control pollution that contributes to climate change. Responsible investing will be at the forefront of positive change by partnering with innovative companies that create sustainable economic progress.