Sustainability means creating value both now and in the future.
Sustainability means meeting the present-day needs without jeopardizing the needs of future generations. It is not just about the environment but also about meeting social and economic conditions.
Some of the primary goals of sustainability include ending poverty and hunger, improving standards of education and healthcare, increasing water quality and sanitation, and creating sustainable economic growth while protecting the health of the land, air, and sea. According to the U.S. National Environmental Policy Act of 1969 (NEPA), the goal of sustainability is to “create and maintain conditions, under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations.”
Companies that focus solely on short-term results cannot compete successfully. Consumers are becoming more educated and more concerned with the challenges of globalization, such as climate change. The public is losing confidence in large corporations. Meanwhile, many politicians push for more regulations and changes to corporate governance.
McKinsey Insights explains, “For today’s value-minded executives, creating value cannot be limited to simply maximizing today’s share price. Rather the evidence points to a better objective: maximizing a company’s value to its shareholders, now and in the future.”
Sustainability means a Future for Business
Harvard Business Review’s “The Comprehensive Business Case for Sustainability” illustrates how companies benefit from integrating sustainability into their business model. The report made the case that companies integrating sustainability have more robust financial performance, customer and team member loyalty, and improved risk management.
While focusing on sustainability can improve the operation and resilience of companies, investors should be skeptical of companies that appear to be greenwashing or simply checking boxes. George Serafeim, Harvard Business School Professor and ESG investing authority, analyzed 4,000 companies. He concluded, “The only way to outperform in this new era will be for companies to make material ESG issues central to their strategy and operations, to go above and beyond their competitors, and then to measure and communicate their superior performance.”
Investment Banking for a Sustainable Future
Society will not make enough progress towards a sustainable future simply by making incremental lifestyle changes. The driving force needs to be innovation and investment in that innovation. This is why we are increasingly concentrating on innovation in the waste to energy, clean water, and green infrastructure solutions.
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Colton Alexander
Colton Alexander is a family company. We are aunts, uncles, parents, and grandparents who care about the planet and its future generations. Colton Alexander provides Investment Banking services through AltSourced Solutions. Member FINRA/SIPC.
We serve our mission as we prepare our sustainability-minded clients for funding and help match them with investors with similar goals and values. This process leads to successful and profitable relationships.