4 ways art investors and collectors can build sustainable portfolios

As a result, some investors, collectors and gallery curators in the art market emphasize environmental responsibility when assembling their portfolios – part of a practice called “impact investing”.

Hauser & Wirth, a gallery at the forefront of this movement, has set a new precedent for major galleries by pledging to reduce its greenhouse gas emissions by at least 50% by 2030 by adopting renewable energy, reducing travel of cargo and collaborating with the climate. -conscious artists who promote sustainable practices in the industry. The gallery’s approach exemplifies how art investors can adapt and mitigate the effects of the climate crisis when curating their collections.

From investing in artists who prioritize environmental awareness to adopting renewable energy in art facilities, here are four green strategies for building a low-carbon art portfolio.

Invest in artists who promote environmental awareness

Some artworks that address environmental themes have increased in market value as more collectors and galleries recognize the growing importance of supporting artists whose work resonates with the climate priorities of younger generations.

The value of art is often linked to its cultural relevance – aligning a portfolio with socially impactful initiatives can increase its value by addressing current issues.

For example, David Bohnett, a philanthropist and technology entrepreneur, is known for his contemporary art collection focused on social justice and sustainable art. Its collection includes notable figures such as Keith Haring, an artist who championed LGBTQ+ rights, and Robbie Conal, known for his street art that criticizes societal and environmental injustices. Bohnett’s portfolio, estimated at $300 million, reflects a larger trend in which a growing demand for civic art, particularly in niche markets, can drive appreciation in value.

Reducing carbon emissions in transport

From public exhibitions to private collections, the global transport of art can significantly increase the carbon footprint of galleries, collectors and investors – especially when air travel is involved.

Our World in Data found that air travel is one of the most carbon-intensive methods of sea transport. Exploring transportation alternatives offers collectors an opportunity to make a substantial impact.

Art collector Sibylle Rochat opts for consolidated land transport that combines multiple shipments in a single vehicle and sea freight that uses fuel-efficient ships over long distances, both of which can significantly reduce carbon emissions.

Transition to renewable energy for state of the art facilities

Art storage facilities are designed to maintain optimal conditions for artwork, ensuring adequate temperature, humidity and lighting to prevent damage or deterioration.

These sites have traditionally relied on energy-intensive climate control systems powered by fossil fuels. By transitioning to renewable energy sources such as wind and solar, upgrading climate control systems for greater energy efficiency, and adopting LED lighting that can reduce energy consumption by up to 75%, collectors and gallery curators can reduce the environmental impact of their art storage.

Art collector Patrizia Sandretto Re Rebaudengo is known for her philanthropic work in the arts and sustainability. She plans to transform the small Italian island of San Giacomo into an art center with galleries, performances and educational programs. The island is scheduled to open to the public in 2026 and will be powered entirely by green energy, Sandretto Re Rebaudengo said.

Go digital

The international art circuit consists of global exhibitions, events and art auctions. It has long relied on extensive travel and foot traffic that can increase the industry’s carbon footprint.

As digital platforms gain widespread adoption, online exhibitions present a cost-effective way to diversify investments while reducing transportation and storage needs.

The COVID-19 pandemic has led galleries like Deitch Projects to adopt digital storefronts and online viewing rooms, reducing international travel and reshaping art buying practices. The Stephen Friedman Gallery is hosting five online viewing showcases throughout 2024, bringing in-person exhibitions directly to your home screens.

Collectors, gallery curators and investors play a crucial role in shaping a sustainable future. The ensemble of portfolios that prioritize ecological responsibility actively contributes to a greener legacy that will inspire future generations to take action and stand as a testament to the power of art to shape a better world.

From supporting artists who promote environmental awareness to reducing the carbon footprint of operations and embracing digital platforms, collectors, gallery curators and investors are preserving art and its legacy in their fight to reduce the climate crisis.