According to Forbes, the energy transition will move a total of $18 trillion for 2030. The reason for that is an increase in socially responsible and sustainable investment. These investments are assets committed to environmental, social, and governance (ESG) metrics. In addition, the annual investment will account for approximately $1.5 to $2 trillion per year by 2030. In order to achieve this, the collaboration between the major economies, mainly the United States, the European Union, and China, is essential.
Why is it profitable to invest in sustainability?
- It is a global trend. The effects of climate change are increasingly visible. More sectors in society become aware of this paradigm shift. For example, the number of investors concerned about the impact of their investment is increasing. Similarly, new generations of millennials are taking these criteria into account when choosing a job.
- Creates long-term profitability. Our production model must be sustainable in the long term if we want to preserve life on the planet.
- Sustainable investments are resilient. Financing and transforming our economic and social model is a necessity.
- There is a governmental commitment. Since the Paris Agreements were signed in 2015, new commitments have followed. For example, the European Green Deal and the EU Biodiversity Strategy 2030. Also, China and the United States have recently committed to achieving carbon neutrality by 2060.
- It has a positive impact on society. Sustainable, fair, and equitable growth among all parts of society generates wealth.
| Factors encouraging energy transition:
✔ There is more commitment among the big economies.
✔ The effects of climate change.
✔ There is a trend towards sustainable investment.
✔ Investors are more concerned: impact investment.
✔ The new generation of “Millennials”, have new career aspirations.
What criteria should we take into account when choosing sustainable investments (ESG)?
- Study the potential impact on each ESG criterion of the companies in which we invest. The idea is that financial and social profitability must go hand in hand.
- Also, consider companies committed to mitigating their negative impact on society. To this end, it is important to analyze the commitments to which the company is linked.
- Analyze what role these companies play on a global scale. In this way, we can predict how political, economic, and social factors will affect the company in the future.
- Examine-in which area of sustainability they are growing. Whether it is renewable energy, emissions reduction, or corporate best practices among others.
- Distinguish whether the intention and purpose of these companies are real. This criterion is key if we are considering long-term investments.
- Choose investments that are already ESG per se. For example, green or social funds.
| What is impact investment?
Impact investments are investments that seek to have an impact on society. Thus, the objective is to contribute to the political, environmental, and social transformation of society while obtaining a financial return for it.
Opportunities for sustainable investment:
- REVALUO, a non-pollutant waste management system
REVALUO is a low-carbon waste-to-energy system. Our technology recovers energy from waste and transforms it into valuable products. It also reduces 90% of the waste in landfills and produces fuels and electrical power to supply industries and homes. Besides, REVALUO is not traditional incineration nor pyrolysis. This technology achieves near-zero-emissions. In fact, it produces less than 4 g/h of CO2 per treated tonne of waste.