The sustainable rise of sustainable investing

Anurag Mathur

The impact of climate change is intensifying, and it’s a serious threat to businesses. A vivid example would be the floods in Thailand a decade ago. The front news pages were inundated with pictures of a waterlogged Bangkok, with major roads under water and factories flooded. The total damage and losses brought about by the floods is estimated at over US$46 billion, with losses accounting for 56 per cent of the total.  And that was ten years ago, before the pandemic or the commitments to net zero.

Consumers are now embracing a green lifestyle more than ever; it’s not uncommon to see a friend switching to a plant-based diet or supporting sustainable lifestyle brands. While the mindset shift is in the right direction, the real power lies in where they invest. Ultimately, consumer demand for sustainable finance services and products will force financial institutions to meet these expectations, fueling a revolution of sorts that will be impactful on businesses, investments, policies and eventually, the environment.