I think this is interesting
Very interesting and thanks for sharing @m! I’ve often believed that the hype around sustainable investing is ‘hyped’ up a little more than is actually true.
Personally I do like to look at sustainable areas where possible but likewise the investment has to stack up and I’m not going to say no to an opportunity simply because it doesn’t have a sustainable purpose behind it.
Sad to see them go but Swell Investing (https://goodbye.swellinvesting.com) in the USA shut their doors earlier this year and they’d been backed by serious VC investment. I know it’s only one example but it does suggest that millennial money does not always follow their mouths if a company like this couldn’t stay afloat.
We’re looking to include sustainable playlists within the Evarvest app but these will be alongside a range of others to ensure there’s something for everyone. Then our investors can put their money where their mouth is as well as where it isn’t
This is a very valid point - I often feel conflicted when looking at some stocks as they might look cheap / offer good growth potential but may not necessarily match up with my personal values. It’s hard to distinguish here given investing is all about earning a return, but overall I think ethical / environmental considerations do play a role in my own decision making process.
That said, it’s also becoming increasingly profitable to back green investments - the iShares Clean Energy ETF has returned around 30% so far this year, while the Vanguard Energy ETF which is dominated by oil & gas / fossil fuel producing companies has returned around 1-2% so far. There’s an underlying trend helping clean energy - with solar and wind power now having a lower unit cost of production than coal and increasingly also natural gas in lots of countries across the world - and this unit cost is decreasing as we get more and more renewable capacity turned on.
More broadly in terms of ESG investing overall, there seems to be a growing investment case for companies which are strong on ESG, although I don’t think the evidence is “black-and-white” yet:
I need to look into some of these green ETFs obviously!