Going Green: The Finance Edition

When you think of sustainability, you probably think of solar panels, electric cars, and recycling. But what does it mean to apply sustainability to the finance industry? 

But as a finance writer who is passionate about sustainable alternatives, I'm fascinated to see the combination. In my research, I found that there are two ways finance professionals and firms can pitch in:

• Creating sustainable offices
• Investing in sustainable options

While these sound nice and dandy, there's a lot of variation. In this guide, I'll go over the main ways finance professionals can go green in 2020.

Creating a Sustainable Office

Designing an eco-friendly workspace is a doozy because you have quite a few options depending on your organization's size and budget. The good news: Going green can also reduce overhead.

Let's review some best practices you already know - recycling paper and electronic waste, upgrading equipment to eco-friendly alternatives, and going digital. If you can integrate these practices into your regular operations, then you'll already be making strides!

Today, there are even more options to have an eco-friendly office, and some give employees an extra morale boost:

• Changing your website hosting provider to a green alternative. I use EcoGreenHosting.uk, which takes part in reforestation, uses energy-efficient servers, doesn't use paper, and is solar-powered.
• Keep more plants in the workplace. Herbs like basil, sage, or rosemary are excellent choices, as they are cost-efficient and require little water or upkeep. The big bonus? Adding a dash of greenery can reduce employee stress by 37% and improve productivity by 15%.
• Let your employees work from home a few times a month. A study by Connection Solutions shows that 77% of employees are more productive when working remote.
• Try using natural lighting in the office. While this isn't always possible, it's a great way to reduce costs while being sustainable. And employees will thank you. Studies show that natural lighting in the workplace contributes to better sleep, health, and higher productivity levels.

Sustainable Investing

When it comes to investing, you need to focus on what's best for your portfolio. Sometimes sustainable options work, and sometimes they don't. But environmentally-friendly investment options will likely continue to grow. If you aren't familiar, here are some possible options:

Traditional Investments - You can invest in stocks, indices, or ETFs that deal with essential resources like water or wind power, green transportation, pollution controls, solar energy, and wind power. There are plenty of big names in the game, like Siemens, General Electric, PG&E - to name a few. It's entirely possible to have a well-rounded portfolio with high risk and "stable" investments. 

Cryptocurrency - This is the more controversial option. First, there is the misconception that cryptocurrencies like bitcoin require more energy than the traditional banking system. While it is difficult to get an accurate number for the entire financial industry, some calculations place bitcoin as 60 times more efficient. Either way, cryptocurrencies certainly have a headstart in terms of infrastructure, as over 70% of mining operations use renewable energy. While it isn't a stable asset, adding cryptocurrency into your portfolio is becoming more acceptable.

Are you creating a sustainable finance industry? 

Sustainable finance is about integrating cost-efficient practices into our daily routine and supporting sustainable initiatives in other sectors through investments. While the main focus of the finance industry should be security, maintaining growth and minimizing risk, the increasing importance of renewable energy and a sustainable lifestyle is likely to make it a must.

Are you ahead of the curve? Let's talk about how you are promoting sustainability below.