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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