The Venture For The Future: Sustainable, Responsible And Impact Investing

Cierra Ralph, 10 Dec 2017: https://goo.gl/eE1A5x

Summary

  • The sustainable, responsible and impact investing market is being driven by millennials.

  • Lower financial returns from SRI investment is a preemptive notion and not hard fact.

  • MSCI KLD 400 has returned a higher average annual total return than the S&P 500 since 1990.

  • Starbucks issued two of the first Corporate Sustainability bonds in the U.S. and Japanese markets.


The Present Value of SRI

"Out with the old and in with new," but can the same be said with unsustainable investments? If you were to ask sustainable, responsible and impact investors and their millennial counterparts, they most likely would agree; investments are no different.


Yet, in our unsteady world, one thing can be certain: markets are changing, demands are changing, and in fact, the corporate world is changing too.


Sustainable, responsible and impact investing or "SRI" has been around since the '60s, but has been increasing in popularity over the last decade. This boost is most likely linked to millennials being introduced into the investment sector.


As we know, millennials are an extremely influential generation, and are certainly the ones that will be investing for another 40-50 years. So could this mean SRI is the future of investing? It very well could be...


According to research done by Morgan Stanley, when compared with the rest of the population, millennials are 2X more likely to invest in environmental and socially conscious companies.


Starbucks (NASDAQ:SBUX) Treasurer Drew Wolff also believes millennials are fueling the recent green bond boom:

"I think the biggest thing driving the demand [is] the millennial generation is realising they can steer their investment dollars just like they do their consumer spend."
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