What are sustainable investments?

The financial market as well as society as a whole and the elements it consists of are also adapted to the new times. Investment portfolios increasingly take in new alternatives to invest capital with a view to environmental protection.

The future lies with responsible or sustainable investments, as determined by the vast majority of companies that work in this market and are developing this dimension in favour of a criterion that not only seeks high returns but is also socially committed to what the money is being invested in.

Facets of environmental care have also been included in most portfolios offered by investment companies. This has brought a great change to the investment world. When we look back the only criterion was result-oriented in terms of profitability and earnings. Now other factors intervene that make one portfolio mare attractive than another.

Added to this are a good marketplace and a good welcome these investments receive both for companies and for private individuals who make them a priority option because of the great advantages they offer. As we saw in the article on the sustainable economy, growth has come about through the growing social awareness regarding care for the environment and resources.

In Europe, this increasingly popular mode of investment already amounts to 17 billion euros.

What criteria does sustainable investment include?

Among the criteria used in this responsible economy are the activity in which each company works, and its ethics, as well as the pollution created by the company of activity, or even the actions of the government in the case of treasury bonds issued by countries. It also benefits companies that actively work on issues of sustainability and care for the climate.

Thus, green investment puts great weight on business strategy with a sustainable, social dimension with criteria for good governance. The first of the three refers to the fight against climate change; the second to factors that include a social commonality, such as human rights, workers' rights, and inequality. And last, governance, in relation to the criteria companies apply to matters of corporate social responsibility.

ESG funds and their criteria

This is the terminology in the world of economics to refer to sustainable investment. ESG stands for "environmental, social and governance." To fulfil this terminology, each fund set up cannot simply call itself ESG; rather, it must be counteracted with the indicators mentioned above for it to be given that designation.

The list below outlines exactly what the criteria are that are taken into account in these funds.

Environmental

• Climate change and its effects
• Greenhouse gas emissions
• Responsible use of water resources
• Respect for nature
• Promoting proper use of renewable energy

Social

• Respect for human rights
• Gender equality
• Respect for society and community
• Actuations of nearness 

Governance

• Application of the sustainable economy
• Environmentally friendly manufacturing
• Correct management of human resources

Global Mobility Call and economic development

Within the framework of this event, the development of the current economy in all its dimensions will have a space at the Forum on Economic Development and Regulation. There, visitors will discover new business opportunities created from the holistic interrelationship of the various different actors: economic, institutional, academic, and social, among the ones that will be involved in Socially responsible Investments.

This will be one of many topics that will be discussed at Global Mobility Call, the event that aims to change society as we know it today in its different dimensions, including mobility, economic development, new plans for urban environments and technology and its application to society.