What is sustainable investing – and does it mean conventional investing is not sustainable?
As consumers, we increasingly want to know where our food comes from, how our clothes are made, and we think about the impact or what we buy.
So why should we not apply the same logic to investing?
In this episode of the Big Money Questions, we talk through what sustainable investing is – and if there is such a thing, whether that means conventional investing is not sustainable.
Peter Michaelis, head of the sustainable investment team at Liontrust, explains how investors can make sure they are putting their money into things that align with their values.
He reveals areas that he believes will be a strong source of growth over the coming years, such as healthy eating and driverless vehicles.
Often, sustainable or ethical or green investing is seen as making a choice to limit the pool of possible investments – and that that inevitably results in lower returns.
But Peter Michaelis argues that investing sustainably can produce stronger returns over the longer term.
For a start, sustainability considers things such as the values of a company and its management team, which lowers the risk of putting money into a firm ripe for a scandal or large fines.
Watch the video below to find out more.