{"id":15840,"date":"2016-09-01T05:00:00","date_gmt":"2016-09-01T12:00:00","guid":{"rendered":"http:\/\/www.yardi.com\/blog\/?p=15840"},"modified":"2026-02-22T15:25:33","modified_gmt":"2026-02-22T23:25:33","slug":"investing-in-humanity","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/investing-in-humanity\/","title":{"rendered":"Investing in Humanity"},"content":{"rendered":"

Curious about sustainable investments? You\u2019re not alone. Sustainable investments result in better operational performance, improved stock prices, and proven psychological benefits. So why aren\u2019t more advisors talking about it?<\/p>\n

JP Morgan defines sustainable investments as \u201cinvestment approaches that enable investors to integrate environmental, social and governance (ESG) considerations into their inv\"sustainableinvestments\"estment strategies and create positive benefits for society.\u201d<\/p>\n

In 2014, an estimated $21.4 trillion of global assets were reported as sustainable investments. That is an $8 trillion increase from 2012.<\/p>\n

This field of investment continues to grow due to favorable results: The University of Oxford and Arabesque Partners reports that 88% of companies that practiced effective ESG management were also able to improve operational performance. Stock prices performance improved for 80 percent of companies that prioritized ESG issues.<\/p>\n

JP Morgan and the University of Oxford have not analyzed the warm and fuzzy sensation that can come as a result of investments with a higher purpose. But others have.<\/p>\n

New York Times compiled<\/a> several studies that examine the connection between acting for the greater good and emotions. Sources conclude that supporting causes that we feel good about reduces stress levels and can even extend lifespans. When we feel positively about a cause that we support, we are more likely to support that cause wholeheartedly and consistently.\u00a0 Do-gooding simply makes us feel better about ourselves and the prospects of the world that we live in.<\/p>\n

Meir Statman\u2019s What Investors Really Want explains that investors value an emotional connection with the company or organization in which they are investing. Such strong emotions can \u201cdrive prices and performance above the funds and fundamentals involved,\u201d reports JP Morgan.<\/p>\n

With financial and personal benefits to gain, why aren\u2019t more asset managers broaching the topic with clients? Only 63 percent of financial advisors have expressed an interest in sustainable investments. Other sources<\/a> cite as little as 37 percent.<\/p>\n

ThinkAdvisor has an insightful article<\/a> that may interpret the disconnect between client and investor interests<\/p>\n

Getting Started <\/strong><\/p>\n

Below are a few basics principals to start the conversation with your advisor, courtesy of JP Morgan:<\/p>\n

First, identify your personal priorities. This will help you work with your advisor to create an investment portfolio that balances sustainable objectives, risks, returns, and your personal satisfaction.<\/p>\n

Determine which approach(es) to investment best suit you:<\/p>\n