All businesses want to be involved in the sustainability landscape, and many claim to be already, but sustainable investing is an area that has typically been underexplored and many businesses don’t have a full grasp on the options available to them. As businesses take a closer look at their sustainability and ESG policies, sustainable investing has risen in popularity and there’s a desire for a greater understanding of investment opportunities and how to make a positive climate impact.
Article 9 Funds
Article 9 funds should make up a significant proportion of sustainable investments for both retail and institutional investors because they are clearly defined with sustainable investment objectives.
These funds directly contribute towards positive environmental and social outcomes, aimed at organisations and projects concentrating on carbon reduction, energy efficiency and community development.
Investing in Article 9 funds directly aligns business capital with business sustainability aims to have maximum impact while contributing to core macro progress in areas such as sustainable food production that can help to lead the shift towards a more sustainable global economy. Â When businesses are looking at sustainable investments, Article 9 funds should be the first place they go.
 Green Loans
Beyond Article 9 funds, impact investing through platforms such as Green Loans helps businesses to contribute to environmental progress and sustainability initiatives. Green Loans connect investor communities with sustainable projects such as no-tillage farming, driving innovation in carbon reduction while generating carbon certificates that also boost returns for investors. Through this investment method, businesses can support the mass adoption of sustainable practices while securing a greater return on investment.
Customers Want Sustainability
Part of the rise in sustainable investments among businesses is driven by the consumer desire for sustainability. A report by the World Economic Forum found that 65 per cent of consumers want to make choices that contribute to greater sustainability, with areas such as food systems suggested as having large scope for improvement. Businesses involving themselves in sustainable investment opportunities, including Article 9 funds and Green Loans, can gain the trust of customers through aligned values. Customers want to engage with companies that share similar values and beliefs.
Strong Business LeadershipÂ
There is evidence that indicates that companies that perform well with their sustainability initiatives also perform when it comes to growth and expansion. Sustainability initiatives and ESG projects are typically longer-term projects with an impact that will be felt months or even years in the future, all of which contribute to global climate aims over the coming decades.
Often, investment in these areas can indicate that a business has strong ownership, looking further into the future rather than prioritising short-term actions, which is another draw for customers and an important aspect of customer retention.
 The Road Ahead
Sustainable investments will only continue to rise, especially as regulators and policymakers begin to factor sustainability and ESG more closely into global initiatives. Integrating environmental, social, and governance factors into investment strategies through Article 9 funds, for example, will become strongly encouraged and in some places may become mandatory. This will go hand in hand with more robust reporting and labelling of financial sustainability products to mitigate greenwashing and bolster investor protection to create a transparent market that makes a significant contribution to climate impact. Businesses should get ahead of the curve and ensure that they’re engaging with sustainable investments in order to futureproof themselves and begin climate contributions immediately.
