In their new book Sustainable Investing, Cary Krosinsky and Nick Robins highlight that Sustainable Investing funds already amount to more than US$5trillion, and calculate that up to a quarter of public equities, as well as corporate and government bonds, (estimated to be worth US$120 trillion in 2006) incorporate parts of the sustainability agenda. This money, focused on the long-term opportunities arising from environmental and social imperatives, could help finance a resurgent and more resilient global economy.
Importantly, Sustainable Investing is not only attracting assets, but also delivering compelling returns. New research by Cary Krosinsky shows that Sustainable Investment funds significantly outperformed mainstream indices between December 2002 and December 2007, returning +18.7%, on average, versus the MSCI World, S&P 500 and FTSE 100’s returns of +17.0%, +13.2% and +13.0%, respectively.
For example, between 2002 and 2007 the Winslow Green Growth Fund significantly outperformed Warren Buffett’s holding company Berkshire Hathaway, registering 200% growth compared to Buffet’s 100%. Looking forward, Jackson Robinson, Portfolio Manager for The Winslow Green Growth Fund states “We believe that the green economy offers one of the most promising paths to economic recovery, and therefore continues to appear very attractive to us as a long-term investment opportunity.”
This trend looks set to continue, as Sustainable Investing funds generate superior risk-adjusted returns by incorporating long-term environmental, social and economic trends within investment and ownership decision-making, rather than following the short-term strategies that has driven the global economy to its knees.
According to Nick Robins, “whether they are huge pension funds or individual savers, investors are looking for strategies that offer long-term security– and sustainable investing provides the answer. As the world seeks to stimulate an economic recovery, sustainable investing in clean technologies, microfinance and social enterprise offer proven routes to generating wealth and resolving pressing problems such as climate change and global poverty.”
Cary Krosinsky is vice president for Trucost Plc. Nick Robins is head of the HSBC Climate Change Centre of Excellence. Their book Sustainable Investing: The Art of Long-Term Performance is published by Earthscan.
Dan Harding | alfa
Uncovering decades of questionable investments
18.01.2018 | University of Texas at Austin, Texas Advanced Computing Center
Corporate coworking as a driver of innovation
22.11.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
On the way to an intelligent laboratory, physicists from Innsbruck and Vienna present an artificial agent that autonomously designs quantum experiments. In initial experiments, the system has independently (re)discovered experimental techniques that are nowadays standard in modern quantum optical laboratories. This shows how machines could play a more creative role in research in the future.
We carry smartphones in our pockets, the streets are dotted with semi-autonomous cars, but in the research laboratory experiments are still being designed by...
What enables electrons to be transferred swiftly, for example during photosynthesis? An interdisciplinary team of researchers has worked out the details of how...
For the first time, scientists have precisely measured the effective electrical charge of a single molecule in solution. This fundamental insight of an SNSF Professor could also pave the way for future medical diagnostics.
Electrical charge is one of the key properties that allows molecules to interact. Life itself depends on this phenomenon: many biological processes involve...
At the JEC World Composite Show in Paris in March 2018, the Fraunhofer Institute for Laser Technology ILT will be focusing on the latest trends and innovations in laser machining of composites. Among other things, researchers at the booth shared with the Aachen Center for Integrative Lightweight Production (AZL) will demonstrate how lasers can be used for joining, structuring, cutting and drilling composite materials.
No other industry has attracted as much public attention to composite materials as the automotive industry, which along with the aerospace industry is a driver...
Scientists at Tokyo Institute of Technology (Tokyo Tech) and Tohoku University have developed high-quality GFO epitaxial films and systematically investigated their ferroelectric and ferromagnetic properties. They also demonstrated the room-temperature magnetocapacitance effects of these GFO thin films.
Multiferroic materials show magnetically driven ferroelectricity. They are attracting increasing attention because of their fascinating properties such as...
08.01.2018 | Event News
11.12.2017 | Event News
08.12.2017 | Event News
19.01.2018 | Materials Sciences
19.01.2018 | Health and Medicine
19.01.2018 | Physics and Astronomy