An article written by Adrian Vella: Head of Investment Network, MeDirect
We might hear words like 'Green Economy', 'ESG' and 'sustainable finance' quite often, but what do they mean? Does Green Economy apply only to governments and big corporations? How can we, as individuals, be part of a better and more sustainable economy? This article will tackle all these questions and more.
What is a green economy? According to the UN Environment Programme, this refers to an economic model that "results in improved human well-being and social equality, while significantly reducing environmental risks and ecological scarcities". If we look back at the past, economic growth patterns, growing populations, production and consumption patterns relied solely on finite resources, which have adversely affected the environment.
A business-as-usual approach is not the solution; hence we must change this mindset. The environment and economy are linked and can no longer be considered independently. In any economy, growth in employment and income is driven by investment in economic activities, infrastructure, and assets. In a green economy, these activities and assets also look at reduced carbon emissions & pollution, enhanced energy & resource efficiency, and at the prevention of further loss in biodiversity and ecosystem in general – therefore supporting the harmonious interaction between humans and nature, and the attempts to meet the needs of both at the same time.
The growing prominence of a green economy is primarily due to people's awareness of the need for sustainability. You might think that a green economy is a more significant issue you cannot be part of; that it is the job of policymakers and governments to create and sustain a green economy. You are mistaken - you can contribute towards enhancing and promoting a green economy. The creation of policy does not mean anything if we, as consumers, do not expect these companies and government to act in favour of a green economy.
So, how can you help encourage a green economy? Through sustainable investing, you are supporting publicly traded companies who adhere to specific guidelines around environmental, social and governance (ESG) issues. These guidelines consider how a company performs on these three aspects; how a company serves as a steward of nature, manages relationships with employees and customers, and deals with its leadership audits and internal controls.
If you are interested in learning more about sustainable investing, you can view the informative medirectalk investment webinar held earlier this year with the topic “Sustainable Investment: investing for a better future”.
Have you finally decided to put your money where your values lie? Do you want to make sure that you support and invest in companies that embrace the ideology of helping the world become cleaner, healthier and safer?
MeDirect, through its online eWealth platform, offers different options for you to invest in Mutual Funds, ETFs, Equities and Bonds. A significant selection of these securities are considered as sustainable investments. All these are easily accessible through the trading platform which also provide you with useful information that could help you make the right investment decision.
If you are unsure what to do and where to start, do not worry! Our Financial Advisors can help you better understand the different options available for you.
Start your sustainable investment journey with MeDirect and Become a Customer now.
The above is for information purpose only and should not be construed as an offer to sell or solicitation of an offer to subscribe for or purchase any investment.
The information given during the webinar was provided by Liontrust Fund Partners LLP and is for general information purposes only and is neither intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The financial instruments discussed may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.
MeDirect Bank (Malta) plc, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370).