This article was published in Kompas on June 13, 2021.
World Environment Day is commemorated every June 5th. The commemoration was carried out to raise global awareness about environmental sustainability. As an investor, this event can be used as a momentum to start implementing sustainable investment strategies.
Investors are responsible, although indirectly, for the negative impact or damage caused by the company’s business activities. This case also applies to the contrary, financing from investors can encourage the development of social and environmental based projects. Environmental, Social, and Governance (ESG) impacts need to be taken into consideration in placing funds.
This concept is called sustainable and responsible investing. Investments are made in instruments or companies that have a positive impact. At least, these companies and projects do not go against the ESG principles.
Sustainable and responsible investing actually not new. Previously, many investors, especially those with idealistic thoughts, did not invest in liquor or cigarette companies. Both businesses are seen as having a negative social impact. This concern extends to other ESG issues such as environmental sustainability, climate change, community empowerment, and even corruption. Lanjutkan membaca