Sustainability Explained

Industrial activities and economic development are creating a number of environmental concerns on a global scale. An unprecedented industrial appetite for resources has sparked a global concern about the earth's ability to sustain itself.

Resource consumption and environmental pollution have become mainstream social issues and have made regulation and innovation a must. Government subsidies, regulation, and new technology have initiated a grand movement towards a brighter and more sustainable future.

As a result of increased regulation and monitoring, thousands of companies effectively track and monitor their environmental impacts--both positive and negative. Benchmarks and rating systems have come into play to assess just how sustainable a company is on a quantifiable scale.

Major considerations include:

These sustainability ratings have created a unique opportunity for investors. By developing diversified portfolios with an emphasis on sustainable practices, we have created an option for investors who want environmentally conscious as well as prudent investments.

From an environmental perspective, it makes good sense to invest in companies that spark innovation and have minimal environmental impact. By tilting investment support towards sustainable companies we would expect to see positive change taking place. Not only can this benefit environmental concerns but can also be a viable strategy for long-term, forward thinking investors. As energy, resource, and emission costs surely and gradually increase, sustainable companies may cut costs, lower risks, and ultimately gain a competitive advantage within a rapidly changing economy.

At IFA Sustainable, we are passionate about helping individuals and organizations align their sustainable values with a time-tested, research driven investment approach.