Environmentally and Socially Positive Investments (ESPs), also known as sustainable financial planning (SDF) are corporate strategies that minimize financial risk through the development of an ESPP strategy that has a long-term vision and a firm commitment to full investment return. Environmentally and Socially Positive Investments (ESPS) refer to corporate social responsibilities (CSR), which are conducted on behalf of the companies, to mitigate environmental harm and improve the quality of the local community. An ESPS is also commonly called a sustainable financial planner. A sustainable financial planner helps companies identify the opportunities for investment in green technology, innovation, energy efficiency, and community development. A Green Financial Planner assesses the opportunities for investment in clean energy technologies and measures the associated risks and benefits.
A variety of environmental and socially responsible investments are available in the market. These investments cover a wide range of sectors including communications, water and waste management, tourism, construction, manufacturing, agricultural, forestry, and fishing. The key challenge for companies is how to make these investments that not only have a sustainable business development but also translate into tangible benefits for the company in the form of reduced emissions, cost savings, and improved customer service. In order to meet these challenges, companies have started developing their own strategies for sustainable business development. The Green Financial Planner seeks to support businesses in their quest by developing an investment strategy specifically focussed at helping companies develop environmentally and socially conscious policies.
As more governments, non-government organisations and other investors become aware of the need to address climate change, companies are increasingly responding by developing policies that are both comprehensive and sector-focused. However, because companies are still not seeing consistently high returns from sustainable investments, many investors are still reluctant to invest. One of the reasons why investors are hesitant to invest in environmentally and socially responsible investments is the complex financial structures of these types of projects. Most such projects are large and involve long-term funding commitments, which may not be repayable. Another reason for investors to hesitate is the fact that most projects are still in the early stages of development and are very unlikely to create profits for the company over the long term.
Due to the complex legal structure of most greenfield investments there is an increased risk of lawsuits and disputes over the investments. Superannuation and other mainstream investment vehicles are based entirely on the law of limited liability. As a result, if a claim for compensation is brought against the company it may only be determined if the claims arise from an events that was within the powers of the company or was authorised by the company. As most of these types of projects are large and involve numerous projects, it is not uncommon for legal proceedings to take years before reaching a conclusion. As most shareholders will not be involved in the day-to-day operations of these projects, it is unlikely that they will be interested in investing in a company where the majority of directors are involved in massive legal battles over their shareholdings.
Unfortunately, in most instances the returns from Greenfield Investments projects are not particularly significant and cannot provide strong annual income streams. This is primarily because they are not focused on long-term sustainable economic growth but rather on the rapid return of capital. As such, investors are generally unable to obtain high returns on their portfolios by utilising sustainable investments to achieve short-term growth objectives. In most cases, investors will find it more difficult to raise capital through traditional vehicles such as life insurance and corporate bonds due to the size and complexity of these products.
Greenfield Investments does not promote individual, sustainable investments but instead provides investment products that complement existing investments. Greenfield does not directly invest in any sustainable venture. This is one of the main differences between this company and other similar sustainable investment companies. Greenfield Investments funds have a focus on using a combination of both greenfield metals and sustainable investing techniques to create an extensive range of value adding investment products.
