Earth Day 2024 – Creating a Sustainable Ecosystem through ESG Investing

April 18, 2024
1:35 pm

What is Earth Day?

Earth day is a reminder of the importance of environmental conservation and sustainability. We only have one planet, and we need to protect it for the future. Unfortunately, fossil fuels, deforestation and stripping natural resources is creating an injury that we might not be able to heal.

Only through our concerted efforts can we make a difference and reverse the damage we have done. This means reducing our carbon footprint and following sustainable habits such as going green, saving water, recycling, using less plastic, helping to clean up the environment, and on a larger scale, investing in companies that are committed to ESG practices.

Earth day 2024 is focusing on removing plastic use and reducing plastic production by 60% before 2040.

Why is Earth Day celebrated?

Although earth day should be celebrated every day, singling out a specific day serves to create awareness of the current environmental issues we face and what can be done to reverse it, like the giant trash heap floating in the Pacific Ocean that endangers wildlife and the fragile ecosystem, deforestation that is causing desert like conditions from erosion, and the increase in global and ocean temperatures.

Earth Day is a call to action to adopt habits that will reduce the daily impact that we have on our planet, and to volunteer for one of many initiatives making a difference. Also, to support organisations that are already making a difference.

What can we do to help the Environment?

Apart from adopting every day sustainable habits, there is more we can do.

If you are passionate about your investments impacting the world around you positively, then you can help shape a more sustainable and equitable future.

Engaging in ESG investing is a powerful way to influence a more sustainable and equitable future while also seeking competitive returns. ESG-friendly companies encourage and promote sustainable practices.

What is ESG investing?

The threat of climate change – affecting economies and societies globally – is one of the most pivotal issues of our era.

ESG investing is putting your money to work in companies that strive to make the world a better place. Ethical investing allows you to align your investment choices with personal values.

Companies following ESG practices, focus on reducing their environmental impact, and improv-ing their social and governance practices. These companies tend to be more stable and offer less risk during volatile economic times as they have processes in place to counter act risk and offer transparency.

The growth of ESG investing will continue for several reasons, including increased awareness of social, labour, and human rights issues and the growing concern over environmental issues such as climate change.

Net Zero Initiative

Many global companies have joined the Net Zero Initiative, to reduce their carbon footprint.

“Net zero must be a collective target.*
In order to limit the temperature, increase to +1.5°C compared to the pre-industrial period, climate science calls for a balance between global anthropogenic CO2 emissions and removals by 2050 at the latest. This balance is called global carbon neutrality, or zero net emissions”.

*net-zero-initiative.com

They follow a three pillar of contribution strategy.

Net Zero Initiative companies are striving to maximise their contribution to reducing global emissions and increasing global carbon sinks by acting on three levers in parallel:

Reducing their direct and indirect emissions by following a 1.5°C compatible pathway.

Helping others to reduce their emissions, through the sales of solutions that decarbonise their customers and through the financing of emissions avoidance projects outside their value chain.

Removing carbon from the atmosphere through the development of carbon sinks, both in and out of their value chain.

Choosing ESG or sustainable funds allows you to invest according to your personal ethics and principles while earning good returns. Statistics show that most ESG funds have often outperformed their regular fund counterparts. Always chat with a financial advisor before investing. They can tailor make an investing strategy according to your risk tolerance and financial goals.

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.