Traditionally, many businesses have operated at a distance from political and global issues. In many sectors, there’s a belief that staying neutral or avoiding controversial matters helps maintain focus on financial returns. However, the world has changed. Political divides, environmental crises, and social inequities are now so deeply intertwined with global economies that it’s becoming harder for businesses and investors to remain indifferent or detached from these realities.
WE Forum stated that geopolitical events have taken many by surprise, particularly the outbreak of conflict in the Middle East. Climate records were broken as 2023 became the hottest year on record, accompanied by the fastest sea level rise. Extreme weather events led to widespread disruption across all continents.
The need for peace
To work for peace is to be peace in every breath, every step, and every action. —Thích Nhất Hạnh
Global conflicts, geopolitical tensions, and wars continue to threaten global stability. Ongoing disputes like the war in Ukraine, the Middle East crisis or rising tensions in areas like the South China Sea illustrate the fragile nature of global peace. These conflicts have far-reaching effects on global economies, causing disruptions in supply chains, increased migration, and reduced investor confidence.
It’s challenging to suggest that businesses and investors can champion peace, especially in areas of rising tension. Even governments and international organizations struggle to resolve cross-border conflicts. Despite ongoing discussions for ceasefires and peace, in reality, war, conflict, and aggression persist in many parts of the world. Political divides separate us, as if that were more important than everything else in the world, such as humanity, shared prosperity and peace.
I believe that both peace and conflict are human-made; If people have the power to create conflict, they also have the power to create peace. From this angle, the investment and business sectors can focus on initiatives that promote international cooperation and conflict resolution. For instance, investing in technologies designed to prevent conflict or reduce violence could have a significant impact. Supporting industries that prioritize diplomacy, nonviolent solutions, and post-conflict reconstruction can not only stabilize regions but also offer profitable opportunities in rebuilding economies.
The need for inclusion
The gap between the wealthy and the disadvantaged has widened globally, sparking widespread discontent and systemic inequality. Marginalized communities—whether due to race, gender, economic and financial status, or disability—often face limited access to opportunities and resources, leading to social unrest and missed economic potential.
How can we eradicate systemic inequities and exclusion? Like peace and conflict, prosperity and poverty are also man-made phenomena. From a business perspective, we should focus more on investing in inclusive business models that prioritize equal access to resources, opportunities and choices for people.
Impact investing, which focuses on generating social and environmental impact alongside financial returns, is a growing field that can drive positive change. Investments focused on financial inclusion can also take the centre stage, as we have a large untapped, underserved financial market (Fintech is never obsolete, Invest & Beyond). Another example, microfinance institutions and financial technology that provide small loans to underserved entrepreneurs in developing countries, helping them establish businesses, lift themselves out of poverty, and stimulate local economies. Investors can also support diversity in leadership by backing companies that prioritize diverse representation in their workforce and management.
The sustainability crisis
Climate change is perhaps the most pressing global issue of our time. Rising temperatures, extreme weather events, and the depletion of natural resources are putting immense strain on both the environment and the global economy. Many industries are facing increasing pressure to transition to more sustainable practices, and the time for action is running short.
Sustainable investing is no longer optional—it’s a necessity. Investors should prioritize companies that actively reduce their carbon footprints, engage in responsible sourcing, and develop green technologies. Renewable energy and electric vehicles are just a few areas where investment can drive the transition to a sustainable future. Beyond this, sustainable agriculture, sustainable logistics, mobility and transportation, water management, and waste reduction are critical areas for innovation and investment to address the growing environmental crisis. (See more here on green tech and net zero potential investments for venture capital, Invest & Beyond).
How investment can drive change
The key question is: how can businesses and investors align their efforts with the goals of peace, inclusion, and sustainability? Here are several approaches:
Environmental, Social, and Governance (ESG) Investing
ESG investing considers environmental, social, and governance factors when making investment decisions. Companies with strong ESG practices are better prepared to manage long-term risks related to climate change, regulatory shifts, and social movements. By focusing on ESG criteria, investors can support businesses that prioritize ethical practices, human rights, and environmentally conscious operations.
Corporate Social Responsibility (CSR)
Corporate social responsibility refers to a company’s commitment to operate in a way that benefits society. Businesses with strong CSR programs actively contribute to sustainable development by engaging in initiatives that benefit local communities, reduce their environmental impact, and improve social equity. Investors can support companies with meaningful CSR programs, ensuring their investments are contributing to positive social outcomes.
Impact Investing
Impact investing goes beyond traditional financial returns by specifically aiming to create a measurable, beneficial impact on society or the environment. Investments can be made in sectors like healthcare, education, and clean energy and technology, where the goal is both financial gain and societal improvement. This approach allows investors to play a proactive role in addressing global challenges while generating sustainable returns.
Public-Private Partnerships
Collaboration between governments and private sectors can lead to more comprehensive solutions to global challenges. Public-private partnerships (PPPs) allow businesses to bring innovation and efficiency to projects that address peacebuilding, social inclusion, and environmental sustainability. By working together, these sectors can leverage each other’s strengths to create long-lasting positive change.
Conclusion
Our global society is deeply interconnected. As we share the same planet, our actions influence one another. Carbon emissions in one region affect other areas, leading to extreme weather events and widespread disruptions across continents. Similarly, conflicts and wars cause supply chain disruptions, increased migration, and economic instability in many parts of the world.
In this shared ecosystem, societies, governments, and the private sector cannot remain indifferent to collaborate to achieve peace, sustainability, and prosperity. When any entity deviates from this collective goal, we drift further from these ideals. Businesses and investors, as part of the private sector, can no longer afford to remain neutral or indifferent to political and global challenges. Investment must have a purpose. By supporting initiatives that promote peace, foster inclusion, and address sustainability, businesses and investors can help solve some of the world’s most pressing issues. Whether through ESG investing, impact investment, or corporate social responsibility, we have the opportunity—and responsibility—to create a better world through thoughtful and purpose-driven investment. The future of business lies in aligning profits with the greater good.
