# Why 2022 signals the green revolution in investing
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-10
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Sustainable Investing: Top Tips for 2022
Meta Description: Discover the latest trends and exciting opportunities in sustainable investing for 2022. Make conscious choices that benefit the planet and your portfolio.
URL: https://financedigest.com/why-2022-signals-the-green-revolution-in-investinghtml

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As much as sustainability holds sway over everyday purchase decisions, so have they garnered the attention of investors, eager to keep track of global trends just beyond the horizon. Welcome to “sustainable investing”.

In fact, sustainability has become a ubiquitous term amongst every sector, every organisation no matter how large and small is making moves to ensure their business is helping the planet, not hindering it.

Whether they’ve become noticeable through investor presentations, news headlines, or through political campaigning, it can’t be denied how quickly environmental sustainability has become a focus [among everyday consumers](https://www.financedigest.com/epi-how-to-build-trust-and-adoption-among-consumers-and-merchants.html "EPI: How to build trust and adoption among consumers and merchants").

**The meaning of** [sustainable investing](https://www.financedigest.com/closing-the-sustainable-investment-gap.html "Closing the sustainable investment gap")

Sustainable [investing is about investors making conscious choices in who they give their money](https://www.financedigest.com/ethical-property-investment-can-your-money-do-more.html "Ethical property investment: Can your money do more? ") to. For example, someone could choose to make more conscious [investments in companies and funds](https://www.financedigest.com/plastic-antibody-developer-strengthens-board-following-further-investment-from-mercia-fund-management.html "“Plastic antibody” developer strengthens board following further investment from Mercia Fund Management") with clearly-outlined Environmental, Social, and Governance (ESG) goals.

Incorporating these ESG decisions into their value propositions allows [companies across varying industries to align themselves to the pressing global concern of decarbonisation — of which many net zero-related targets](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies") are set between 2025 to 2050.

Beyond the moral and socially-responsible impacts associated with sustainable investment choices, [investors will of course keep an objective preference to ensure healthy financial returns](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") for their portfolios.

This common drive to seek [value creation is arguably among the biggest challenges that have stalled the earlier uptake and popularity of ESG-focused investment](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") choices. But with pivots toward greener options made even by dyed-in-the-wool resources and energy companies like Fortescue Metals and Rio Tinto, it’s clear to see the [time has come for greater adoption of green](https://www.financedigest.com/why-manufacturers-mustnt-lose-their-green-focus-in-troubled-times.html "WHY MANUFACTURERS MUSTN’T LOSE THEIR GREEN FOCUS IN TROUBLED TIMES") energies to halt the drastic decline in global environmental health.

**Top sustainable [investing tips](https://www.financedigest.com/three-fundamental-tips-to-enhance-your-investment-portfolio-performance.html "Three fundamental tips to enhance your investment portfolio performance") for 2022**

In the same way that investors look to emerging trends to find long-term value creation opportunities in the market, more global companies have dialed into the [purchasing influences of the now-majority millennial workforce, and its preference for high-quality ESG practices](https://www.morganstanley.com/assets/pdfs/2021-Sustainable_Signals_Individual_Investor.pdf). Beyond keeping aligned with these preferences through your assessment of viable companies that keep recognisable ESG efforts, a look at the wider [industrial landscape](https://www.financedigest.com/healthy-fat-free-snacks-market-2022-outlook-current-and-future-industry-landscape-analysis-2031.html "Healthy Fat-Free Snacks Market 2022 Outlook, Current and Future Industry Landscape Analysis 2031") will present a number of still-developing trends.

A number of these trends will present as major overhauls within otherwise entrenched industries, such as [automotive production and electric vehicles (EV)](https://www2.deloitte.com/us/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html). This industrial shift alone drives plenty of [investors away from fossil-fuel related investments](https://www.financedigest.com/investment-inspection-trips-bring-liverpool-to-life-for-asian-property-investors.html "Investment Inspection Trips bring Liverpool to life for Asian property investors"), towards materials that support the emerging EV market.

Similarly, other efforts to decarbonise will see [large investments](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") made to develop a green hydrogen market, as a more sustainable and environmentally-friendly source of fuel.

[**Exciting opportunities**](https://www.financedigest.com/probiotic-soda-market-product-innovation-by-live-soda-and-lifeway-foods-to-create-exciting-growth-opportunities-reports-by-fact-mr.html "Probiotic Soda Market: Product Innovation by LIVE Soda and Lifeway Foods to Create Exciting Growth Opportunities, reports by Fact.MR")

Peak iron ore spot prices during the first half of 2021 provide Fortescue Metals with a solid financial position to [continue building upon its Future Industries division](https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02449349-6A1061702?access_token=83ff96335c2d45a094df02a206a39ff4). Among initiatives associated with this new division includes the [company’s efforts to enable its sustainability](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") financing framework, which supports eligible green and social projects.

Australian Ethical offers another leading example for ESG-focused investors to consider, especially with their proactive [support of companies such as Sentient Impact Group](https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02464549-2A1344897?access_token=83ff96335c2d45a094df02a206a39ff4). Among its recent asset acquisitions, Sentient uses impact investing as a medium through which the group seeks to generate strong [financial](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") investment returns, as well as create positive social and environmental results within Australia, and globally.

[**Always consider the risks**](https://www.financedigest.com/fintech-at-risk-why-multi-factor-authentication-isnt-always-the-answer.html "FinTech At Risk: Why Multi-Factor Authentication Isn’t Always the Answer")

It takes [significant effort and investment](https://www.financedigest.com/hermes-bolsters-sme-service-with-significant-investment.html "HERMES BOLSTERS SME SERVICE WITH SIGNIFICANT INVESTMENT") to achieve lasting, sustainable change. Maintaining a healthy balance sheet with positive cash holdings, low net debt and manageable capital expenditure places companies in good stead to achieve such long-term change, and deliver [continued growth](https://www.financedigest.com/multilocal-hires-new-directors-as-steep-growth-trajectory-continues.html "Multilocal hires new directors as steep growth trajectory continues").

Taking time to understand which companies are sustainable and have commendable ESG efforts, can help you become a [top sustainable investor](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM").

**Michael Kodari, CEO of KOSEC – Kodari Securities**

Michael Kodari is the Founder and CEO of Kodari Securities (KOSEC), a [leading provider of investment](https://www.financedigest.com/invest-in-infrastructure-to-escape-the-starvation-cycle-warns-leading-nonprofit-sector-strategist.html "Invest In Infrastructure To Escape The ‘Starvation Cycle’, Warns Leading Nonprofit Sector Strategist") services to a substantial and diversified client base, including corporations and ultra high net worth individuals. With over a decade of experience in funds management and stockbroking, Michael has worked with some of the [world’s leading value investors and financial](https://www.financedigest.com/shakedown-on-horizon-for-financial-technology-world.html "Shakedown on horizon for financial technology world") institutions. A philanthropist and a prominent expert in the stock market, CNBC Asia has referred to him as “the brightest [21st century](https://www.financedigest.com/taking-the-pain-out-of-payments-for-the-21st-century-worker.html "TAKING THE PAIN OUT OF PAYMENTS FOR THE 21ST CENTURY WORKER") entrepreneur in wealth management”.

**About KOSEC**

KOSEC – Kodari [Securities is a leading provider of investment](https://www.financedigest.com/2018-it-security-predictions-methods-for-attacks-investment-areas-cybersecurity-strategies.html "2018 IT Security Predictions-Methods For Attacks, Investment Areas & Cybersecurity Strategies") services to a substantial and diversified client base, including corporations and ultra high net worth individuals. Established in 2010, KOSEC exists to empower and equip [investors with the best investment opportunities](https://www.financedigest.com/the-vc-opportunity-breaking-down-barriers-for-private-investors.html "The VC opportunity: breaking down barriers for private investors "), knowledge, tools and resources, as well as providing the highest level of product/service offering to help them make better and more informed investment decisions.

Find out more at https://www.kosec.com.au/

**_This is a contributed content_**


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