Institutional Investors Make “Sustainable Business” An Investment Priority

12 02 2008

This one is for anyone attending the upcoming ASAE and the Center Social Responsibility Summit.

The 2008 Investor Summit on Climate Risk will bring together more than 400 institutional investors, Wall Street leaders and CEOs from around the world to consider the scale and urgency of climate change risks, as well as the economic opportunities of a global transition to a clean energy future.

According to the Wall Street Journal,”Investors are increasingly trying to come to grips with the uncertainty about how the U.S. government will address the issue of global warming, and what effects that will have on businesses from power companies to insurers…

But just like the “tipping points” that many scientists point to in the Earth’s changing climate, investor interest in how to play global warming seems to be gathering steam. Investors are taking a more proactive role. Last week, three big banks said they’ll toughen financing standards for coal-fired power plants that could come under fire from new environmental regulations.Increasingly, the accent is on business opportunities presented by the world’s efforts to rein in global warming. Morgan Stanley, Lehman Brothers Holdings Inc. and Deutsche Bank AG have set out to identify which companies help the world adapt to changing climate, such as water-treatment companies, as well as businesses that can help mitigate further climate change, like clean-energy firms.”

Why should I care? Follow the money.

Investors are finding that the future of business (and future investment) will be in companies and industries who are innovating business models, product or service designs or delivery systems to be more sustainable economically, environmentally and socially.

It isnt simply about recycling or making modifications to systems proving they cant fundamentally change.

Social responsibility is passe.

Sustainable business models and product/service designs are what investors see as the future.

It is about innovation.

Business got us into this. Business will get us out.

Follow the money.

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