Sustainable Investing: What Is It, and Should You Care?

In today’s world, where environmental and social issues are gaining increasing attention, sustainable investing has emerged as a powerful approach that aligns financial goals with broader societal and environmental objectives.

This blog aims to provide an overview of sustainable investing, explore why you should consider incorporating sustainability into your investment portfolio, and discuss strategies for investing sustainably.

What is Sustainable Investing?

Sustainable investing, also known as socially responsible investing (SRI) or environmental, social, and governance (ESG) investing, involves selecting investments based on their positive ecological, social, and ethical impact. It goes beyond traditional financial analysis to consider how companies manage their environmental risks, treat their employees, and contribute to the communities in which they operate. Individuals can drive positive change while seeking financial returns by investing in avenues that prioritize sustainability.

Why You Should Consider Sustainability in Your Portfolio:

Sustainable investing offers several compelling advantages.

It allows investors to align their portfolios with personal values, ensuring their investments contribute to a more sustainable and responsible future.
Sustainable investing can help manage risk by identifying companies better equipped to navigate environmental challenges, regulatory changes, and shifting consumer preferences.
Studies have indicated that integrating ESG factors into investment decisions can potentially lead to competitive financial performance over the long term.
Socially Responsible Investing (SRI) can benefit the community you call home directly by investing in initiatives that can help anything from job creation to rental crises and healthcare.

How to Invest Sustainably:

When considering sustainable investing, there are several strategies to explore. One approach is negative screening, where investors exclude companies involved in controversial industries such as tobacco, weapons, or fossil fuels. On the other hand, positive screening involves actively selecting companies that demonstrate strong ESG practices.

Another popular strategy is impact investing, which focuses on generating measurable positive social or environmental outcomes alongside financial returns. Additionally, investors can consider thematic investing, targeting specific areas such as clean energy, water conservation, homelessness, education, or healthcare.

Sustainability in Real Estate:

Real estate development has a significant role in addressing the pressing housing crisis issue and promoting sustainability within communities. As highlighted in a piece by CBC News, the housing crisis underscores the urgent need for affordable and accessible housing options for individuals and families. A crucial solution to combat this social issue lies in constructing multi-family homes, apartment complexes, and rental housing. By focusing on these projects, communities can provide more housing options, enhance affordability, and promote sustainable living practices.

These are just a few of the ways that real estate can be sustainable and socially responsible:

Good Health and Well-being: Health is tied to home. Adequate and comfortable housing that is safe can enhance an occupants’ mental and physical health.
Economic Growth: Many developments and buildings contribute to the local community. This includes the municipal tax revenue generated by any commercially zoned spaces within a building and the number of local jobs and small businesses supported by the property.
Sustainable Communities: Having affordable and varied housing options within a community means a more diverse group of individuals working and living in a given area. Diversity isn’t just important within an investment portfolio—it’s also crucial for the health of a city.

Cooper Pacific and Sustainability

Cooper Pacific has actively contributed to addressing the housing crisis by collaborating with borrowers developing multi-family homes and rental unit projects such as the West Urban Erksine project. Cooper Pacific has funded developments like 205 Hall Street in Nelson, BC, and 103 McCurdy Road in Kelowna, which have been presold to BC Housing and will provide adequate residential housing.

Sustainable investing allows investors to make a positive impact while pursuing financial returns. By incorporating sustainability into their portfolios, individuals can contribute to a more sustainable future and support companies that prioritize environmental, social, and governance considerations.

Real estate offers promising avenues for sustainable investment, with multi-family dwellings and innovative building techniques leading the way toward greener and more efficient homes. To explore how sustainable investing and real estate can align with your investment goals, we encourage you to contact Jordan at Cooper Pacific for personalized guidance and insights.