In today’s episode, we’re diving into the fascinating history of sustainable investing, exploring how the idea of aligning your money with your values has evolved over thousands of years. From ancient religious teachings to modern-day corporate commitments, the journey of sustainable finance has seen a massive transformation and it’s only getting bigger.
We’ll start with the ethical foundations of investing laid down by Judaism and Islam, where the principles of justice, equity, and preventing exploitation were deeply embedded in the financial practices. Then, we fast-forward to the 18th and 19th centuries, when faith-based movements in Europe and America began to shape socially responsible investing (SRI), avoiding industries like slavery, alcohol, and tobacco.
The 20th century saw SRI grow into a political force, driven by major social movements like civil rights, labor rights, and environmental advocacy. This led to the rise of ESG investing in the early 2000s, with the UN’s groundbreaking reports and agreements bringing sustainable investing into the mainstream.
Finally, we’ll look at the modern-day ESG market, which now manages trillions of dollars globally, and tackle the growing challenges, including greenwashing, inconsistent metrics, and political pushback against ESG policies. But we’ll also offer practical advice on how you can align your own investments with your values and make a real-world impact.
Whether you’re a seasoned investor or just starting, this episode will give you the insights you need to navigate the world of sustainable finance. Don’t miss out on learning how the journey of sustainable investing can shape your financial future!
Sources:
A History of Impact Investing — Investopedia
Socially Responsible Investing — Wikipedia
Timeline and History of ESG Investing, Rules and Practices — TechTarget
The History of ESG & Timeline Infographic — The Sustainable Agency
Global Sustainable Investment Review 2022 — Global Sustainable Investment Alliance (GSIA)
Will the Backlash from the Right Slow ESG Investing? — Yale Insights
Ohio, Oklahoma push back on ESG investing — Insurance News