Our GoGreen climate neutral service, for instance, lets you offset your greenhouse gas emissions by investing in internationally recognised climate protection projects. Our Lesotho project in South Africa is an example.
4. Increase in sustainable investments
Sustainable investments direct investment capital to companies looking to combat environmental destruction and climate change, while promoting corporate responsibility. PwC’s Global Investor Survey 2022 found that ESG outcomes are one of the top priorities for investors.
Younger investors are more drawn towards sustainable investing. They desire to support businesses with intrinsic values that promote positive change to systematic issues like climate change, social and wealth inequality.
More support for environmental concerns will drive up investments in sustainability development causes, pushing this trend forward in the years to come. Businesses seeking ESG funds will, however, need to balance stakeholder interests with long-term business outcomes, without participating in greenwashing activities.
5. Greater transparency
According to an article by McKinsey & Company, over 90% of S&P 500 companies publish their ESG reports. However, ESG ratings often diverge from one another, so it is easy for companies to find one favourable to their interests. As such, a standard on ESG transparency is necessary to make trustworthy disclosures to stakeholders.
With ESG regulations increasing alongside its popularity, companies will be required to consistently publish sustainability reports to ensure investors know how sustainable long-term financial returns are generated and environmental risk is mitigated.
Such transparency can also help ethical consumers in their purchase decisions. Consumers are becoming increasingly willing to pay more for sustainability, not just in Hong Kong but also around the world. According to Environment + Energy Leader, there was an increase in the willingness of consumers willing to pay more for sustainability, increasing 8% from 2021 to 2022. As consumers perceive themselves to be the representatives of change, companies will have to step up their environmental and social sustainability development plans to sustain brand loyalty.