Rani Tarek Jarkas – Sustainability investing and impact investing to generate financial profits while targeting socio-economic development as well as environmental protection

Sustainability investing directs investment capital to companies that seek to combat climate change, environmental destruction, while promoting corporate responsibility. While Impact investing is an investment made with the intention to generate positive, measurable social and environmental impact alongside a financial return.

Investors want to do their part in growing their capital with companies that take a long-term view of how their practices affect the environment and the world they operate in. Sustainable investing using the framework of ESG investing is helping to facilitate a new frontier for investors. It provides a choice in the marketplace with an increasingly attractive option for investors to grow their wealth or personally involve themselves in the push towards sustainable business practices.

Sustainable investing doesn’t necessarily mean that you must forfeit financial returns. While it’s impossible to guarantee returns, ESG funds and investments can perform just as well, or better, as non-ESG funds. In 2020, 14 of 17 ESG-focused exchange-traded funds (ETFs) outperformed the S&P 500 from January to May. Meanwhile, according to Morningstar, 23 new ESG funds launched in the past year, providing investors with more sustainable choices and indirectly encouraging companies to reevaluate their ESG scores in order to be included.

The growing impact investment market provides capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education.

Impact investing challenges the long-held views that social and environmental issues should be addressed only by philanthropic donations, and that market investments should focus exclusively on achieving financial returns. The impact investing market offers diverse and viable opportunities for investors to advance social and environmental solutions through investments that also produce financial returns.

Cedrus Investments, led by Mr. Rani T Jarkas, is well-equipped and dedicated to serve international clients with best-in-class full suite of financial services, including sophisticated and objective financial advices, customized investment plans and active asset management, to help them meet personalized investment goals in consistent with risk management and investment horizon goals.