SII- Sustainable Investing
Investing in publicly-traded companies can be
frustrating for the concerned investor.
The goal of increasing shareholder value (by increasing the price of
stock) generally requires continual growth in sales and profits. For this reason, companies are beholden to
financial analysts who influence the price of stock.
Sustainability calls for operations over the long haul
in a manner that does not reduce the rights and opportunities of future
generations. It requires a very long
term view. On the other hand, financial
analysts take a very short-term view. If
a company is not doing well in the short term, the stock can be sold.
Nevertheless,
to promote sustainable business practices, a growing number of investors seek
to accomplish two goals with their investments: (1) earn a reasonable return
for the assumed risk and (2) protect or do least harm to the earth’s natural
systems including air, water, forests, and agricultural land. These investors seek to support businesses
that are serious in their pursuit of environmental sustainability.
SII promotes the practice of sustainable investing among
investment professionals, institutional investors, and individual
investors. This practice should reward
companies and public agencies that are taking significant steps to adopt more
sustainable practices. Companies that
adopt sustainable practices, as well as investors, will benefit financially.