Gregory Voetsch has been at the forefront of infrastructure investments. He has been on the lookout for investment opportunities in infrastructure for long term sustainability. His opinion gets sought by executives and other decision-makers.
Sustainability is one of the factors that investors think about when deciding whether to invest in a project or not.There’s a good reason why world leaders converge every year to discuss sustainable development goals. It is because humans can’t hope for a future if we don’t begin to implement sustainable practices now.
Increasing climate disasters such as flooding, drought, heatwaves, and wildfires are already a cause for concern for investors. These disasters are threatening and have already impacted business properties and operations around the world.
Although the food sector is especially vulnerable to the effects of climate disasters, these disasters often have cascading effects. For example, the 2001 drought that affected the US Pacific Northwest resulted in less water available for irrigation. Food prices skyrocketed. The dip in water levels in hydroelectric dams in the area resulted in reduced power production. Industries that depended on low-cost power from these dams were adversely affected. That included smelters, which resulted in reduced output of cans.
The risk to companies is not just material. Companies with unsustainable practices can no longer hide. Companies must adhere to industry norms such as traceability, transparency, as well as environmental and social responsibility to remain competitive. Advances in information and communication technology, as well as the rise of social media, have meant that companies with poor practices can be held accountable for the damage they cause. Many companies have suffered heavy losses and sharp dips in the value of their shares following exposure of their practices to the world.
Sustainability has now become one of the major drivers for businesses in all industries and expected to continue to transform industries through the coming years. Sustainability is now getting viewed as a competitive advantage. It has been categorized as a meta-trend by the Harvard Business Review alongside globalization, mass production, and globalization. Major corporations are now committing large chunks of their capital to sustainability commitments. For example, in 2015, Philips committed to investing billions of dollars to green product innovation, and Goldman Sachs pledged to give $750 billion in a decade to grow sustainable finance.
Companies are also including sustainability as one of the major topics for discussion when meeting their investors. It is not surprising as trends in the investment community show that investors are shifting away from businesses that are causing harm to the environment and more towards those whose practices geared towards sustainability. While many investors still aren’t enlightened about the role they play in creating a sustainable future, many are shifting towards businesses with sustainable practices as these businesses are proving to be a good investment both now and for the future.
Being aware of environmental issues has also opened up both investors and companies to financial opportunities. Companies can monitor, manage, and mitigate risks to their performance. They are also able to identify business opportunities, including the development of new and sustainable products or services to appeal to the new breed of conscious consumers. Sustainability will soon become the deciding factor over what qualifies as a good investment.
LASTEST FROM THE BLOG
Yes, Sustainability Can Be a Strategy
Are you thinking of adopting sustainable practices in your organization? Research shows that sustainable practices offer benefits that extend beyond the protection of the natural resources. Organizations that implement sustainable practices are beginning to view these practices as not only necessary for their survival but also as a strategic move. Find out more here.
https://hbr.org/2019/02/yes-sustainability-can-be-a-strategy
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Why all businesses should embrace sustainability
Many of the top international organizations are adopting sustainable practices as part of their corporate social responsibility. However, sustainability is proving to be a strategy that’s become necessary to remain competitive in today’s market for businesses of all sizes. Find out more here.
https://www.imd.org/research-knowledge/articles/why-all-businesses-should-embrace-sustainability/
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In Sweden, sustainable design takes cues from the natural world
Biomimicry is taking lessons from nature to solve design and function problems in the modern construction industry. Learn how a Swedish architect is changing the world’s perspective on how buildings function and look by adopting ideas from nature. Find out more here.
https://www.cnbc.com/video/2020/10/30/in-sweden-sustainable-design-takes-cues-from-the-natural-world.html?&qsearchterm=sustainable
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Responsible Business
Sustainability is no longer a concept for only those businesses run by ‘socially and environmentally’ aware individuals or large corporates. Adopting sustainable practices has become a necessity for any company that wants to remain competitive, boost their shareholder value and increase their market share. Find out more here.
https://www.iisd.org/topics/responsible-business
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Definition & Examples of Environmental Sustainability
Interested in adopting sustainable practices in your organization? Learn about what sustainability really is, how it works and how it can benefit nature, society and your organization. Read about how organizations are implementing sustainable practices and reaping the benefits in various aspects.
https://www.thebalancesmb.com/what-is-sustainability-3157876
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Ten Ways to Live Sustainably
Want to live more sustainably? Environmental sustainability doesn’t mean forgoing the comforts of life. There are many ways you can reduce unnecessary waste and be more mindful of your resource consumption. Find out how you can live more sustainably and preserve resources for future generations.
https://www.dummies.com/education/science/environmental-science/ten-ways-to-live-sustainably/
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The big problem with sustainable investing, according to Wall Street legend Burton Malkiel
Interested in sustainable investing? Learn about what sustainable investing is and why it isn’t a black and white choice. Burton Malkiel discusses the problems with the ESG rating systems available today. Malkiel reveals how these systems work and why they can’t be trusted when making a decision for sustainable investing.
https://www.cnbc.com/video/2020/10/26/the-big-problem-with-sustainable-investing-according-to-burton-malkiel.html?&qsearchterm=sustainable
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45 Sustainability Resources You Need to Know
Want to learn more about the impact of human behavior on the planet? These 45 resources offer information ranging from what sustainability is and the impact of human activities on the planet to new and innovative ways in which sustainability is being implemented in the corporate world as well as by individuals.
https://www.purdueglobal.edu/blog/student-life/45-sustainability-resources/
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Protecting Natural Resources
Interested in protecting natural resources? Learn about the natural resources available and various approaches used by different communities to protect and even restore these resources. Find out how you too can be a part of the solution and not the problem.
https://www.sustainable.org/environment
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Fmr. Ford CEO: Tesla has to prove they have a sustainable business model
Is Tesla’s business model sustainable? According to Mark Fields, former Ford CEO, the company’s profitability is being driven by their sales of CO2 tax credits and not from the sale of electronic vehicles. Find out why Mark Fields believes that Tesla still has a long way to go in becoming profitable in their core business.
https://www.cnbc.com/video/2020/10/21/fmr-ford-ceo-tesla-has-to-prove-they-have-a-sustainable-business-model.html?&qsearchterm=sustainable
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Starting at the source: Sustainability in supply chains
Adopting sustainable practices along their supply chains can help consumer companies not only reduce their environmental and social impact but also position themselves for growth. Adopting sustainable practices will mean more reliable and affordable energy and natural resource supplies for consumer businesses. Find out more here.
https://www.mckinsey.com/business-functions/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains#
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What is Triple Bottom Line (TBL)
Are you using the Triple Bottom Line (TBL) to measure your organization’s impact on the environment and commitment to corporate social responsibility? This model developed by management and sustainability consultant Joh Elkington measures a company’s performance based on profit, people and the planet. Find out more here.
https://www.investopedia.com/terms/t/triple-bottom-line.asp
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The sustainable sneaker start-up Allbirds wants to take over your closet
Well known for its comfy slip-on sneakers, Allbirds is now venturing to the rest of your closet with sustainable clothing. The brand has released four new items: a wool cardigan, a t-shirt, a wool-puffer jacket and a wool jumper. Read to learn more about the innovative materials and methods used to make these sustainable products.
https://www.cnbc.com/2020/10/20/sustainable-sneaker-start-up-allbirds-is-selling-sweaters-t-shirts.html?&qsearchterm=sustainable
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The goal of sustainable agriculture is to meet society’s food and textile needs in the present without compromising the ability of future generations to meet their own needs.
For a long time, mainstream agricultural practices have been held responsible for damage to the natural environment. Sustainable agriculture is changing this. It is ensuring that societies can meet their present needs while protecting the same capability for future generations. Find out more here.
https://sarep.ucdavis.edu/sustainable-ag
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How IoT And AI Can Enable Environmental Sustainability
IoT and AI are finding many applications in modern society and are now being used to improve environmental sustainability. Read on to see how IoT and AI are being applied to reduce e-waste, improve agricultural sustainability, help protect species diversity and much more.
https://www.forbes.com/sites/cognitiveworld/2019/09/04/how-iot-and-ai-can-enable-environmental-sustainability/?sh=61f3296468df
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