While some investment fads come and go, the trends driving the need for sustainable business practices are here for the long-term. Embracing investments in these forthcoming trends is a way of readying your portfolio for the coming changes in the global economy. Obvious long-term themes include the move away from fossil fuels to renewable energy. But there's also an increased use of artificial intelligence and new technology to help care for an aging population and keep the environment clean.
Responsible investing assets have skyrocketed to $12 trillion as of 2018, a 38% increase in two years, according to the US SIF Foundation. This is projected to grow exponentially.
Of all the generations of investors, young people are at the forefront of RI, according to a 2019 report by the Responsible Investment Association.3 This trend might signal a bright future for responsible investment. Millennials’ incomes are rising, and they are poised to inherit US$30 trillion in the decades ahead. As they begin to invest that wealth, they might also fuel the growth of RI.