Investors continue to embrace sustainability, according to the Forum for Sustainable and Responsible Investment. In “U.S. Sustainable, Responsible and Impact Investing Trends 2014,” the Washington, D.C.-based group points out that “U.S. sustainable, responsible and impact investing (SRI) has grown substantially over the past two years.”
Total U.S.-domiciled assets under management using SRI strategies expanded from $3.74 trillion in early-2012 to $6.57 trillion in early-2014, an increase of 76%, its research finds: “These assets now account for more than one out of every six dollars under professional management in the United States.”
Corporate executives are also getting on board. McKinsey Global Survey’s July 2014 study, “Sustainability’s Strategic Worth,” found that sustainability is becoming more important to corporate strategy.
“In past surveys, when asked about their companies’ reasons for pursuing sustainability, respondents most often cited cost cutting or reputation management. Now 43% (and the largest share) say their companies seek to align sustainability with their overall business goals, mission, or values — up from 30% who said so in 2012,” the report notes.
Brazilian electricity provider Cemig, for instance, is a component in sustainability indices, including the Dow Jones Sustainability Index (DJSI World), the ISE index of the BM&F Bovespa exchange and the MSCI Global Sustainability Indexes. The company also carries out studies involving identification of alternative scenarios and best practices, enabling it to identify the principal aspects that should guide the company’s strategy in relation to sustainability, says Luiz Fernando Rolla, Cemig’s chief corporate communications and institutional relations officer.
“Part of Cemig’s action in sustainability comprises its continuous efforts to make the company increasingly committed to the reality and demands of its environment,” he explains. “Allied with its vision, mission and values, Cemig creates shared value, uniting philanthropic and corporate-citizenship strategies with the objectives of its business, promoting economic and social development of the communities where it works.”