Why Sustainable Investing matters
As we continue to see a rise in the range of global sustainability challenges and complex risks, investors are beginning to re-evaluate traditional portfolio approaches. Sustainable investing, often times also referred to as socially responsible investing, is the process of incorporating environmental, social and governance (ESG) factors into investment decisions. As the term ‘ESG’ suggests, its scope go well beyond environmental concerns alone. It also includes the following: • Environmental: Climate risks, clean energy, addressing resource scarcity • Social: Diversity, human rights, and cybersecurity • Governance: Business ethics, transparency, and anti-corruption Individuals that typically invest in companies, organizations and funds with the purpose of generating measurable social and environmental impact alongside a financial return fall in the bracket of sustainable investing. What this kind of investment typically results in is a widespread impact across various