Sustainability investing has risen to become a high-profile form of managing money – but does it actually benefit anyone else? It can sometimes be difficult to show what positive impact it has on wider society, particularly if it is seen as coming at a cost.
An example of how green initiatives do not always lead to the intended results can be seen in Germany phasing out its nuclear power program following the 2011 disaster in Fukushima, Japan. While this in essence was a worthy cause, one side effect was that it made the country more reliant on its coal-fired power stations. This contradicted Germany’s energiewende (energy transition) program which aimed to reduce carbon, raising emissions instead.