Sachs: Why sustainable development is just as important as finance

American economist Jeffrey Sachs has urged investors to add socially responsible firms to their portfolios in 2015, as consumers become more aware of companies' social and environmental credentials.

Speaking at Skagen Funds' annual conference, Sachs said investors should not just look at the financials of a company before making an investment decision. "We invite financial loss by not being insightful and rigorous," he said. "Finance can build great industry, but it has been isolated from the real economy. Financial instruments are obviously important, but investors have a chance to invest in essential sustainable infrastructure that is financially and socially sound." As people become more conscious of environmental costs, added Sachs, they will be wary of investing in projec...