This article features as part of IFA Magazine’s celebration of World Earth Day.
The importance of regenerative investments over sustainable investment alone cannot be understated, says Yan Swiderski, Co-founder of the Global Returns Project.
There has been a recent call for investors to consider where they deploy their capital – ensuring that investments tick both the regenerative and sustainable boxes.
The call to ‘invest in out planet’ has been a loud one as we approach World Earth Day and co-founder of the Global Returns Project, Yan Swiderski has suggested that more responsibility needs to be placed on investor to do good for the planet.
He said: “The theme for Earth Day 2022 is ‘Invest in Our Planet’. While this theme should certainly encourage investors to consider sustainable investing, it’s time for investors and advisers to think more broadly about how to deploy their capital.
“Even the best ESG portfolios cannot address all the environmental and climate issues that we face. A comprehensive and future-oriented approach to investment must include a contribution to ‘regenerative investments’.
By ‘regenerative investments’, we mean not-for-profit organisations tackling climate and biodiversity challenges. These organisations deliver non-financial ‘global returns’ that enhance and protect the biosphere. In doing so, they make all other investments – including sustainable investments – less risky.
“On Earth Day 2022, investors can start considering these organisations as a separate asset class. They can begin taking them into account when allocating capital every year.
Sustainable investments can have positive impacts. On their own, however, they just are not enough. ‘Investing in our planet’ means that those who have investable capital must think more broadly than ever before as to how to deploy it to best effect.”