Sustainable investing has become an increasingly popular strategy among investors, as it presents an alternative to standard asset-based measurements like revenue, staff size and stock price while also providing a risk-assessment framework. Across the market, sustainable investing data is used to fulfill personal and professional objectives, serving both as a means of finding safe and stable investments, as well as morally-likeminded companies.
Evidence of why sustainable investing is important can be seen across the many different types of sustainable investing. These take the form of elements such as green investing, the ESG framework, impact investing and socially responsible investing.
The prevalence of sustainable investment strategies reflect not only an expansion of criteria that is used to judge companies, but also a shift in the patterns and behaviors of investors. In this guide, you’ll learn the answers to questions such as:
- What is sustainable investing?
Sustainable investing is an investment strategy centered on one or more environmental, social and/or ethical factors. It seeks to focus investments and the movement of capital towards companies and funds that either forward these causes.
- What are the benefits of sustainable investing?
Sustainable investing can supplement existing investment strategies by introducing risk-assessment elements. Approaching companies with a sustainable investing lens can frame them as either stable or risk-prone and can inform one’s decisions on when to buy and sell accordingly.
- What are the different types of sustainable investing? What are the major differentiators between sustainable investing vs impact investing?
Sustainable investing strategies include green investing, SRI, impact investing and ESG initiatives. Each takes a different portion of the sustainable investing definition and stretches it in a different direction, choosing to focus on some combination of Impact, social responsibility, environmental concerns and social elements.
Download our guide to get additional information on these subjects, see why sustainable investing is important and learn practical instructions on how to adapt ESG into your current business or investment strategy.
