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2020 sustainable finance
Is 2020 the year for sustainable finance? The world is rapidly changing, there’s a lot of technological and social developments. People in 2020 are realizing more and more how important sustainability is. Due to the lack of aeroplanes and cars being used in 2020, a lot of realization has been made as to how big of a difference and how much more beautiful our world can be. No flying planes caused the sky to be clearer so we can see the stars and get more sunlight and the air easier to breathe. Fewer cars on the road opened the gateway for animals to roam more freely and having less filthy carbon dioxide in our longs.
None essential companies have been shut down, amplifying the lack of added value those companies are actually bringing. People have opened their eyes to see what is important and what is not in their lives. This will cause a lot of service-based companies and product-based companies that do not really bring a core added value and only make sales due to extensive marketing obsolete.
What is sustainable finance?
Sustainable finance is a relatively new term in the finance world, it basically means financial services that include environmental, social and governmental influences into the process. This basically focusses on not only making the financial advisor richer but also the client and the society that surrounds him or her.
However, the term sustainable finance might be altered in a positive way due to the many developments in technology, society and personal interests. Sustainable finance might branch out to what consumer consumes, how they make purchases and how often. People in 2020 are going for obvious reasons less to supermarkets, encouraged to make purchases only once a week. This will make a huge impact on how much money will be spent. Spending less money and living minimalistic can also be seen as doing sustainable financing.
Sustainable finance can be part of our whole life, as finance as a crucial element for a society to function. To get a better picture here are a few examples of what sustainable finance really is.
- Purchasing a sustainable company share instead of an oil company share, if more people see the value of sustainability, in general, the tremendous value of sustainability and sustainable energy will be realized by the masses and can most definitely surpass the value of oil, easily.
- Purchasing an electric car instead of a gas or diesel-powered car.
- Buying vegetables instead of meat.
- Saving money and investing it instead of buying presents for others that will get thrown away or hoarded.
- Refusing to purchase anything that damages society, health and the environment in any form or affiliation.
- Being financially independent.
- Saving up money and investing it so that money multiplies itself. This can also be done and passed onto their children and not to charities that do not focus on long term results.
- Linking with the one above, investing in your children can be essential as if they start with a stable financial situation and an ethical mindset they can do so much more good with their lifetime. By starting at the bottom, so much time has been wasted to get to the top, that when they are at the top, they have less time to make a difference.
- Purchasing only what you need, and not what you want. People are keen to purchase anything they see and like. This can be caused by lack of knowledge or lack of purpose. People might buy useless items because they don’t know what to do with their money or what makes them truly happy. People don’t believe that they can ever have more so they don’t even bother saving or investing, they think it is unreachable. The sad truth about society is, that we still need some of these people to either produce or purchase the products they help create themselves, either directly with their hands or indirectly with their aimless demands.
Why is the market heading towards sustainable finance?
Simply put, people are becoming smarter. Traditions are fading, especially the negative traditions and people are becoming more and more informed each day as there is more information being uploaded to the internet every minute. Greta Thunberg has also made it more known and ”cool” for the younger generations and has caused pressure to the older generation that dislikes change and progression. Many major faces in mainstream media are also supporting sustainability at a great extent, one of the biggest being Leonardo DiCaprio.
Kids, teens and people in their twenties are posting more sustainability-oriented things to their social media and are informing older generations within and outside their households.
Paper money and coins are also rapidly being obsolete as everyone is transitioning to online banking, making traditional banks irrelevant and opens up more space. By switching to digital banking, less paper and raw materials have to be used. New online banks are promoting sustainability and donate environmental friendly causes. Online banks can also be fully powered by green energy and the technology running them can also become carbon neutral.
What are the biggest companies pushing sustainable finance?
- Tesla, an electric car company that also sells solar cells and power walls.
- Bunq, a new sustainable online banking business.
- SpaceX, a rocket company using reusable rockets and help mankind expand their locations.
- Amazon, an e-commerce business that might switch to complete autonomy, needing no workers to produce or procure their products.
- Eviation, an aeroplane company trying to establish a firm ground for electric powered aeroplanes and fully environmentally friendly.
- Schools, schools that offer online education don’t require big buildings and an excess amount of resources and waste. Everyone can study in their own homes, reducing the need for travel and energy consumption.
We can go on for days, but these are the most known. If you know any more companies or have suggestions, please leave a comment in the comment section below or leave a comment under our Instagram post.
How can you do sustainable financing at home?
- Save your money.
- Invest your money with low risk.
- Buy only what you need, see if this actually provides long term value to your life.
- Try to promote sustainable companies. Buy their products instead of the company that is not sustainable, the more people buy the higher the demand, and the cheaper the sustainable products get. Talk about sustainable companies.
- Don’t have a child if you’re not financially stable. Make sure you have enough money to raise a child for 18 years before getting one. Make sure you can provide for them to grow their business/es, invest in your child after they are 18.
- Live a healthy lifestyle, most of the time, being healthy means being sustainable.
- Go to an online school.
- Try to get a job where you can work online.
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