Sustainability Investing

Most investors seek adequate and secure financial returns. However, there is an increasing number of investors also concerned with sustainability investing. That is, selecting investments into companies committed to the five corporate sustainability principles: innovative technology, corporate governance, shareholder relations, industrial leadership and social well being.

Corporate sustainability is not only attractive to many because of its social merits, it also contributes to long term investment value. Sustainability companies have exceptional performances and positive risk / return profiles as companies engaged in sustainability tend to utilize innovative techniques in areas including production, management and technology.

Investors can use the Dow Jones Sustainability Group Index (DJSGI) to benchmark the performance of sustainability companies. The DJSGI consists of over 200 companies that comprise the top 10% of this group. By mid 1999, the market capitalization of this index exceeded 4.3 trillion USD, clearly illustrating the market demand for investment into these types of companies.


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