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Getting Started with Sustainable Investing

Sustainable investing is a growing trend that is changing the way businesses and investors think about investing. It refers to a range of practices in which investors aim to achieve financial returns while promoting long-term environmental or social value³. It combines traditional investment approaches with environmental, social, and corporate governance (ESG) insights to generate more comprehensive analyses and make better investment decisions³.

Here are some steps you can take to get started with sustainable investing:

1. Understand what sustainable investing means: Sustainable investing is the process of incorporating ESG factors into investment decisions¹. It ensures firms aren’t judged solely on short-term financial gains but on a broader picture of what and how they contribute to society³.

2. Choose a sustainable investing strategy: There are several strategies investors can leverage when investing sustainably, including negative/exclusionary screening and positive/best-in-class screening³.

3. Evaluate investments using ESG factors: An investment’s sustainability impact is evaluated using ESG factors such as environmental impact, social impact, and corporate governance³.

4. Stay informed: Keep up to date with the latest trends and developments in sustainable investing by following industry news and research.

Source: GPT-4 enabled Bing, 30/04/2023

(1) What Is Sustainable Investing? | HBS Online – Business Insights Blog. https://online.hbs.edu/blog/post/sustainable-investing

(2) Why sustainable investing matters | EY – Global. https://www.ey.com/en_gl/financial-services/why-sustainable-investing-matters

(3) What is Sustainable Investing? | CFA Institute. https://www.cfainstitute.org/en/research/esg-investing/sustainable-investing

(4) Sustainable Investing – Investopedia. https://www.investopedia.com/sustainable-investing-4427774

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