What is strategic sustainable investing?
Strategic sustainable investing is a strategy that integrates environmental, social and governance considerations – ESG factors – into investment management. Environmental factors include companies’ energy use and efficiency, social factors comprise human rights and gender equality whilst governance factors incorporate issues such as CEO compensation versus average pay.
Where have you heard about strategic sustainable investing?
Strategic sustainable investing is commonly known by the longer name of sustainable, responsible and impact investing, or simply SRI. Since its emergence in the early 2000s, SRI has increased in popularity until today one in five dollars under management in the US is invested in the strategy.
What you need to know about strategic sustainable investing.
You might think that investing in a firm which takes ESG factors seriously means that you’re investing in one which limits its economic growth. However, an emerging body of research suggests a company’s ESG performance is directly linked to its financial performance, and a company with a strong focus on its ESG factors makes a better long-term investment.
If you’re one of the increasing amount of people that want to align their investments with their values, then strategic sustainable investing is a great way for you to help produce positive environmental and social outcomes whilst still making a financial return.
Find out more about strategic sustainable investing.
The Washington DC-based Forum for Sustainable and Responsible Investment is an excellent resource for understanding all about strategic sustainable investing.