How to Invest in Sustainable Portfolios
Anneke Zwart, Student (University), Netherlands, Moderator
Investments are more and more trying to align their investments with their values. They have begun to think differently about potential investments portfolios, and are increasingly willing to invest in sustainable funds or portfolios.
But, what are ‘sustainable’ investments really? Sustainability has become a word that can be interpreted in many ways. At the moment it relies too much on voluntary corporate disclosures such as annual reports in which sustainability is been looked at in different ways. Due to ambiguities around the true meaning of ‘sustainability’, it is difficult to determine what investments are sustainable and what investments aren’t. Even business people who focus on operating in a sustainable way do not even know what sustainability is and what it isn’t.
For example, a company that has increased efficiencies with regard to its water use may say that it is operating ‘sustainable’ on that dimension. However, some people argue that organizations need t...