Sustainability in times of crisis

Sustainability in times of crisis 640 426 Climatetrade

The reality that the world faces in times of COVID-19 is leaving us a devastating scenario and a highly concerning outlook.

Due to the prevention and security measures established by different governments around the world, most companies have been forced to reduce their productivity or even cease their activity.

Right now, freelancers, startups, SMEs and large corporations are focusing all their efforts on ensuring the survival of the business… Contingency plans, readjustments and many other measures in order to stay afloat.

Clearly, this establishes a new order of priorities in which sustainability takes a back seat. However, experts consider that it is important to keep a long-term perspective in the current context when talking about sustainability.

Sustainable ETFs have continued to attract assets this year, while traditional ETFs have seen strong downward trends, as shown in the graph above.  

There has been a structural shift in investor preferences that will lead to large and steady flows into asset classes that are perceived to be more resilient to sustainability-related risks, such as climate change.

Socially Responsible Investment (SRI) is a trend that has grown in popularity in recent years. Therefore, there are many sustainable funds in the market, which apply the well-known ESG criteria and may even exclude certain companies.

The current situation shows what the world could look like: crystal clear waters and blue skies. So we can say that, in any case, this crisis underlines the fact that sustainable development is the only way forward.

You are also seeing that companies are adapting quickly by implementing teleworking, flexible hours or meetings by video conference avoiding commuting. Eventually, all this is revealing as something good for equality, diversity and the environment.

In conclusion. Before this enormous crisis that is paralysing the whole world, we are noticing an increase in the sustainability factor in all company strategies, an increase that would have continued to rise if the world economy had not come to a standstill, both by investors and by consumers themselves, who are increasingly aware and involved.

There is no doubt that when we overcome this crisis, our response must help create economies and societies that promote sustainable development.