Sustainable Investing

Sustainable investing, also known as eco-friendly or green investing, refers to the practice of directing capital toward companies, projects, or funds that prioritize environmental, social, and governance (ESG) factors. It aims to generate financial returns while promoting positive environmental and social impacts. This type of investing is driven by the growing awareness of climate change, social inequality, and the need for ethical business practices.

Key approaches to sustainable investing include:

• ESG Integration: Incorporating ESG criteria into investment analysis and decision-making processes.
• Impact Investing: Directing funds to projects that aim to achieve specific social or environmental outcomes, such as renewable energy or affordable housing.
• Exclusionary Screening: Avoiding investments in industries or companies that do not align with ethical or sustainable values, such as fossil fuels or tobacco.

Sustainable investing has gained significant momentum as investors recognize the importance of aligning their financial goals with their values and the global push toward sustainable development.

Source(s):

• Carbon Collective. (2024). Eco-Friendly Investments.
• United Nations Principles for Responsible Investment (UN PRI). (2023). Principles for Responsible Investment.
• World Economic Forum. (2024). What is Sustainable Investing?

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