In a recent newsletter to celebrate the Earth Day, Seedrs, the equity crowdfunding platform, made the case for sustainability. “Sustainable investing isn’t just for venture capitalists and private equity moguls,” they argue. “Of equal importance are the investment decisions made every day by regular investors, which now make up the investment industry’s fastest-growing sector, on target to reach $23 trillion globally. Companies committed to ESG standards have shown to outperform their less ethical counterparts.”
In other words the future is in our hands, the platform claim, as investors look with increasing interest at companies with a positive impact. “According to Nielsen research, nearly 70% of consumers are willing to spend more for a product created by a sustainable brand, and Harvard Business School’s study showed that in 80% of cases, companies with elevated socio-environmental standards boasted better stock price performance,” the Seedrs’ team writes.
“In fact since launch, the S&P 500 ESG Index has consistently outperformed the S&P 500 by over 2%. Pair that with the fact that 65% of people across China, Germany, India, the UK and the US would choose to work for a firm with a strong social conscience, and we already have a more than compelling case for going green.”
Meanwhile, the UK “has cemented its position as a leader in purpose-driven investment, with sustainable tech companies receiving nearly 8 times more investment than in 2015 (over £900M in funding in 2020 alone).”
“The future looks bright,” the platform concludes, “not only for the health of the planet, but for growth and equality at global scale.”