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Over US$5 Trillion of Sustainable Investing Funds Available to Relaunch the Global Economy

Over US$5 Trillion of Sustainable Investing Funds Available to Relaunch the Global Economy

Published 03-26-09

Submitted by Earthscan

Sustainable Investing

Investors have allocated over $5 trillion to sustainable investing strategies, which could form the core of an economic recovery strategy. In their new book Sustainable Investing, Cary Krosinsky and Nick Robins highlight that sustainable investing funds already amount to more than $5 trillion - and calculate that up to a quarter of public equities, as well as corporate and government bonds, (estimated to be worth $120 trillion in 2006) are already incorporating parts of the sustainability agenda. This money, focused on the long-term opportunities that arise from environmental and social imperatives, could help finance a resurgent and more resilient global economy.

Importantly, sustainable investing is not only attracting assets, but also delivering compelling returns. New research by Cary Krosinsky shows that sustainable investment funds significantly outperformed mainstream indices between December 2002 and December 2007, returning +18.7%, on average, versus the MSCI World, S&P 500 and FTSE 100's returns of +17.0%, +13.2% and +13.0%, respectively.

For example, the Winslow Green Growth Fund significantly outperformed even the Oracle of Omaha himself. Between 2002 and 2007, Buffett's holding company Berkshire Hathaway increased by 100%, while the Winslow Green Growth Fund saw over 200% growth. Looking forward, Jackson Robinson, Portfolio Manager for The Winslow Green Growth Fund states "As the financial markets stabilize, we believe that the green economy offers one of the most promising paths to economic recovery, and therefore continues to appear very attractive to us as a long-term investment opportunity."

Despite being hit by the recent downturn, this trend looks set to continue, as sustainable investing funds generate superior risk-adjusted returns by incorporating long-term environmental, social and economic trends within investment and ownership decision-making, rather than following the short-term strategies that has driven the global economy to its knees.

According to Nick Robins,"whether they are huge pension funds or individual savers, investors are looking for strategies that offer real security over the long-term - and sustainable investing provides the answer. As the world seeks to design strategies to stimulate an economic recovery, sustainable investing in environmental infrastructure, clean technologies, microfinance and social enterprise offer proven routes to generating wealth and resolving pressing problems such as climate change and global poverty."

Cary Krosinsky is vice president for Trucost Plc. Nick Robins is head of the HSBC Climate Change Centre of Excellence. Their book Sustainable Investing: The Art of Long-Term Performance was published November 2008 by Earthscan. Please contact mailtoMartha@styluspub.com for more information.

Earthscan website: http://www.earthscan.co.uk/

Environmental Markets Insight Series
Press Kit
Climate Change Corp. Article
Financial Times Article

PRAISE FOR SUSTAINABLE INVESTING

"Sustainable Investing is a good read for managing your portfolio."-Gail Whitman, Nature, International Weekly Journal of Science

"This splendid compilation of articles, plus a to be treasured Glossary from Mercer, provides up to date analyses of virtually the entire spectrum of socially related investment possibilities. The field is in a rapid state of change - Steve Viederman's lovely piece on the Fiduciary remains a constant guide - I recommend to everyone that you buy and read this book. Without it, you are playing yesterday's game."-Robert A.G. Monks, shareholder activist, one of the founders of the field of corporate governance, and author of Corpocracy and The New Global Investors, and co-author of Watching the Watchers, Corporate Governance for the 21st Century

"As the roles of business and the capital markets shift to directly address global challenges, practitioners can no longer ignore the growing momentum in sustainable investing practices. This book fills an important gap in pulling together the best thinking from the experts in the field. An excellent overview of past learnings, current best practice and future trends."-Cheryl Hicks, Focal Point, Capital Markets & Valuation, World Business Council for Sustainable Development and Co-Founder, Sustainable Finance Geneva

"This is a significant contribution to a rapidly growing field; the editors have brought to the public important themes and thought-provoking arguments on topics that will dominate the twenty-first century. This is a must-read book for practitioners and investment analysts alike."-Gordon L Clark, Halford Mackinder Professor of Geography and Director, Oxford University's Centre for the Environment

"An excellent volume that puts sustainable investing front and center in the debate about building a more equitable global economy and providing retirement security for working people."-Michael Musuraca, Designated Trustee, NY City Employees Retirement System

"Cary Krosinsky and Nick Robins have managed to assemble a unified publication that brings to light the financial innovation occurring on a massive scale for the planet. From carbon to water and microfinance to private equity, Sustainable Investing has put forth an image of the world where capital markets have the potential to provide solutions to our most pressing environmental problems."-Bryan Garcia, Center for Business and the Environment at Yale School of Forestry and Co-Editor of Carbon Finance: Environmental Market Solutions to Climate Change

"'Sustainable investing' has lacked a rigorous, systematic examination - until now. Nick Robins and Cary Krosinsky have assembled authors expert in their disciplines who collectively describe a dynamic force, which is both effecting change and being affected by it. A generation of investors will look first to Robins & Krosinsky for answers about sustainable investing."-Peter D. Kinder, President & Founder, KLD Research & Analytics, Inc

"If you want to understand how finance can offer practical solutions for sustainable development - rather than being criticized for being an obstacle - read this very clear, comprehensive and persuasive book." -Antoine de Salins, Executive Director, FRR (Fonds de Réserve pour les Retraites)

For more information, go to http://www.styluspub.com/Book
/BookDetail.aspx?productID=179039

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