May 7, 2019

Report: Sustainable Investing Grew in 2018, in Response to Climate Change

by Ariana García Carranza in Uncategorized

As a result of growing global concern over climate change, responsible investments grew by 34 percent to $30.7 trillion over the past two years (2016-2018).  

Europe remains the biggest region for sustainable investors with about $14 trillion devoted to these strategies, up 11 percent from 2016, according to a report from the Global Sustainable Investment Alliance. Other markets, while smaller, are growing faster. Japan saw the biggest jump, with assets in sustainable strategies up fourfold to $2.2 trillion. The Government Pension Investment Fund, worth 150.7 trillion yen ($1.4 trillion dollars), signed the United Nations-backed Principles for Responsible Investment (PRI) in 2015. 

The PRI launched in the New York Stock Exchange in 2006. Today, the UN-backed PRI is a thriving global initiative with over 1,600 members representing over $70 trillion assets under management. PRI’s role is to advance the integration of environmental, social, and governance factors (ESG) into analysis and decision-making through thought leadership and the creation of tools, guidance and engagement. Institutional investors were initially reluctant to embrace the concept, arguing that their fiduciary duty was limited to the maximization of shareholder values irrespective of environmental or social impacts, or broader governance issues such as corruption. But as evidence has grown that ESG issues have financial implications, the tide has shifted. In many important markets, including the U.S. and the EU, ESG integration is increasingly seen as part of fiduciary duty. 

Money managers around the globe said clients were increasingly asking for sustainable strategies in 2018 and that climate change became a leading issue for investors this year. Retail investors bought up more ethical funds, according to the report, and now account for about 25 percent of assets, up from 20 percent in 2016. 

In 2018 nearly two out of every three dollars – $19.8 trillion in total – were invested in so-called negative screening, where investors rule out one or more specific categories of investments, such as tobacco, gambling or fossil fuels. Investors who integrate environment, social and governance principles into their portfolios now represent about $17.5 trillion, up 69 percent from 2016. Assets that focus on corporate engagement and shareholder activism around environmental and social issues rose to $9.8 trillion in 2018, up from $8.4 trillion. 

At Primal we have been aware of the changing tides in the investment and business worlds, which is why we chose to develop our business model around sustainability. With the largest commercial neem plantation in the world, we are growing the future of agriculture and sustainability. We believe that neem derivatives will help transition the agriculture industry from the use of synthetic pesticides towards environmentally friendly neem derivatives that can help increase yields, protect humans and the environment, and fight climate change. With our personal care brand ViTA, we have also helped packaging evolve with the first ever bottles in the world made of 100% recycled Oceanbound plastic, diverting millions of tons of plastic from polluting the oceans while providing consumers with natural products and the latest innovations in the beauty and personal care industry. 

By building our business model around sustainability we are able to provide a safe and long-term investment opportunity into one of the largest growing sectors in the world, the agriculture industry, which will be key to feeding an ever-growing human population. Investing in neem is a great way to divest your assets into a sustainable business that will experience tremendous growth in the future. With a vertically integrated business model, Primal is sure to become one of the global leaders in the production of neem extracts, a market that has experienced tremendous growth in the past few years. As part of the UN’s Global Compact, our business ensures social responsibility and sustainability throughout the entire chain. 

To learn more about us and how you can divert your assets into sustainable investments with us, click here.