Sustainable Investing: Potential and Opportunities

Compared to the traditional one, sustainable investment has long-term promising return.

Planning is imperative for a company before settling about investment. This also implements when the company decides to join the sustainable investment. It’s rather new compared to traditional investment. But, the return is assuring.

Before elaborating deeper about the potential and opportunity for eco-friendly waste management, the current perception is such investment will be a trade-off for the company.

It’s time to draw a bold line between perception and fact.

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Potential and Opportunity of Sustainable Investment

There is a perception that sustainable investment will sacrifice the company’s financial strength. Apparently, this perception is not based on fact. Furthermore, a recent study from Morgan Stanley shows that sustainable investment performs better than conventional one.

From that survey, 72% participant believes the company with environmental, social, and governance (ESG) factors will gain a higher return. Likewise, this kind of investment is more reliable in the long-run.

Furthermore, the study also analyzes the performance data from 10.228 open-end mutual funds. Also, 2.874 separate accounts within the past 7-year period. It’s found that sustainable investments usually fulfill the expectation, even exceed it compared to the traditional investment.

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Thus, for those who are outlining to invest in sustainability, here are some potential and opportunity to be considered:

  1. Promising in Long-Term Period
    Apparently, the investment associated to waste management Indonesia is promising. For example from a global perspective – from Morgan Stanley Institute’s study – the sustainable equity mutual fund in the longest period still shows expected return.
  1. Toward Fossil Free World

The world is gradually moving toward a fossil-free world. The COVID-19 pandemic highlights this kind of long-term goal. The prices of energy and oil are plummeting. Governments are attempting to embrace eco-friendly energy options. Thus, the choice to do sustainable investment means you are on the same track. There is only one objective, for a better world. This new concept possibly displaces the conventional investment concept.

  1. Change of Investment Trend

It’s not just one or two companies that consider the sustainable investment. There are many intriguing aspects, even the eco-friendly waste collection. All the attractive factors contribute to the interest to participate, from small to large investors. It’s also possible that this trend will rearrange the way stocks are priced. Whenever the situation is favorable for eco-friendly waste management investment, the outcome will be more promising.

  1. Broader Reach

Another perception arises whenever talking about eco-friendly waste management: The market segment is limited. This is not true, somehow. Furthermore, an electricity company from Saudi and Qatar National Bank recently sold green bonds. It’s used for funding eco-friendly projects. Thus, it’s not only waste management Indonesia that opens the chance to do sustainable investment. Companies worldwide are marching in the same direction.

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Where To Start?

Need to look no further in finding a partner to commence sustainable investment. In Indonesia, the company that handles all the details from eco-friendly waste collection to waste collection is Waste4Change from Bekasi.

Moreover, Waste4Change also received the investment from Agaeti Ventures together with East Ventures and SMDV in 2020.

To achieve better Indonesia waste management, Waste4Change opens up the opportunity to begin sustainable investment. More info at w4c.id/RWM.

References:

Study Shines Light on Sustainable Investing. https://www.morganstanley.com/pub/content/msdotcom/en/ideas/sustainable-investing-performance-potential/

This Is Why I’d Buy Top UK Green Stocks and Build an ESG Investment Portfolio Today. https://www.fool.co.uk/investing/2020/09/25/this-is-why-id-buy-top-uk-green-stocks-and-build-an-esg-investment-portfolio-today/

Sustainable Investment. https://www.wespath.org/retirement-investments/investment-information/investment-philosophy/sustainable-investment

Author: Azelia Trifiana

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