The wealthy are finding it a struggle to invest in a way that actually makes the world better rather than just one that makes it worse
after Stanford University decided to divest its endowment from coal-mining companies, he said: “It would probably take the market less than an hour to absorb the shares. It would not lead the executives of the affected companies to engage in soul-searching, much less in changes in operations.”
Gates and other critics may have a point—not investing in environmentally harmful companies, does not exactly drive them into bankruptcy. Other investors will simply take that place.Divestment might be one of the few options available to today’s environmental investor. Wealth managers complain that there are too few companies they can invest in which are both fully sustainable and profitable.
And those companies that do hit upon that magic formula tend to me too small to grab investors’ attention. The amount of legal fees and due diligence required for dozens of private deals would simply not be worth the returns. It is the same with bonds. Estimates suggest that just 5% to 10% of green-bond proceeds go towards funding conservation projects. Most go into energy, buildings or transport projects.
This is a pain point for investors who want to invest sustainably. In a recent survey by Morgan Stanley 85% of investors in the U.S. said they had an interest in sustainable investing. However, 65% said a lack of financial options prevented them from following through (though there is often
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