Diversification may be the first word that comes to mind when you think of an investment strategy, but not all strategies are created equal. A sustainable portfolio is diversified and profitable without harming humankind. Sustainability isn’t always all about green energy.
Think tobacco. Smoking destroys people so a tobacco company would not be a sustainable investment, even if they are organic. Building a sustainable investment strategy is about protecting humankind and mother earth. It’s as easy as remembering the five Ps.
As in the example above, it’s important to think about people when you invest. Investing in companies that destroy people is almost like stealing money. No amount of money is worth destroying humankind, even in the short-term. You’ll always get a bigger return when you invest in companies that help sustain or at the very least treasure life. It also increases your return on investment because as you’re making money you know you’re also supporting a cause that benefits humankind.
The planet is another big one when it comes to sustainable investing, but this seems like an easy one. Green companies and green energy make it easy to find a company that supports the planet or fights climate change. Just be sure to do your research here. Plenty of companies claim to support the planet or humankind while they throw their trash out the back door. Consider things like the company’s mission statement and social responsibility. Supporting the planet is about more than just jumping on the bandwagon.
Supporting humankind through sustainable investing means putting your money into projects that promote peace. Peace is essential for human survival. With nuclear weapons and weapons of mass destruction it is vital that sustainable investment projects only support peace and peaceful events. The growth and prosperity of humankind depends on popular support for alliance with other nations and our investments should reflect that understanding.
Prosperity means profitability but it also means security and welfare. This may be food security or a place to live. Prosperity is prosperity for humankind, everybody. Sustainable investments that support prosperity could be investments that support food security for all or fighting the homelessness crisis in some parts of the country. Keep in mind that prosperity doesn’t stop in America. Those investments can and should support those things across the globe.
Sustainable investments that support humankind are all about partnerships. These partnerships support stakeholders as well as employees and consumers. They could be partnerships with other companies or other countries around the globe. What it really boils down to inevitably is a partnership between people and the earth. We must work together to support each other and support the planet even through our investment strategies.
Sustainable Investment Strategies Support Humankind
When building a sustainable investment portfolio, it’s important to remember your five Ps. Invest in companies that support people, the planet, prosperity, peace, and partnership for a profit that benefits humankind now and in the future. This is the only way to truly profit from investing.
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