The growing concern about climate change and its impact on society has triggered a new investment conversation. Historically, companies have often neglected environmental sustainability and social cohesion, but increasing demands from regulatory bodies and public observers are driving investors to consider these crucial issues. 

FIO Capital believes sustainable investment is an investment that solves the present problems and challenges without jeopardising future needs. It is all about discovering better ways of doing business that will benefit corporations and citizens both now and in the future.

Understanding that the economy is not delivering quality of life for a huge section of the world’s population introduces a harder component to sustainable investing: more than a billion people are malnourished, lack clean water and live without electricity. The global population is expected to grow rapidly in the next 30 years, from 6.9 billion in 2010 to 8.8 billion in 2040, mostly in developing countries. This growth will place even greater strain on natural resources and companies that operate as the backbone of these communities.

Climate change compounds these problems, changing patterns of rainfall and agriculture, increasing the frequency and severity of extreme weather events, and threatening to displace millions of people. We need to halve global carbon dioxide emissions by 2050 if we are to avoid the worst impacts, but this will require a radical restructuring of our economy away from dependence on oil and gas.

As awareness of the environmental crisis grows, sustainable investing becomes a key area of growth. Every decision, whether personal or corporate, impacts the environment, and the repercussions can be felt for years to come if we ignore these impacts.