Does the public have the
wrong idea about green investing?
- The environmental impacts of investing in “brown” firms can be hundreds of times larger than those of investing in “green” firms.
Many investors believe that directing their capital towards green firms is the most effective strategy to support the need to reduce greenhouse gas emissions. Recent studies suggest this approach certainly helps maintain a low-emission economy, but it does not significantly reduce emissions because these firms do not have substantial emissions to reduce. To truly drive down global emissions, we need to reorient our approach and target industries and firms that are heavy emitters but are committed to a greener future — the so-called “brown firms.” Strategic investment in these firms can provide a necessary capital infusion, enabling them to undertake ambitious emissions-reducing projects and accelerate their transition towards sustainable operations. In essence, the investment then acts not only as a financial mechanism but also as a catalyst for change in industries that matter the most in the transition to a sustainable energy future.
- Your company can present its green projects in a way that is meaningful to investors and financial institutions by quantifying the impacts of these projects.
Your sustainability report can reflect the quantitative reduction in emissions and trace the journey from brown to green, emphasizing the transformational role of strategic investments. You can share an enlightening narrative of how innovative investment strategies can create a significant impact on reducing global emissions while providing investors a chance to contribute actively to the cause of climate change mitigation.
- You can leverage a sustainability report as a credible way to quantify the beneficial impacts of your green projects to your stakeholders, financial institutions, and investors.
Working toward and reporting the impact of emissions-reduction projects over time provides metrics for fund managers and financial institutions to show the impact their investments have had in actually reducing emissions over time with the goal of attracting more investors to put their capital where it will have a real “green” impact.
We can help.