While there is no universal definition, sustainable investing (or responsible investing) refers to an investment philosophy that considers environmental, social and governance (ESG) criteria and can be grouped in the following two strategies:
- Socially Responsible Investing (SRI): Avoiding harmful investments that do not align with your values (fossil fuels, for-profit prisons, firearms and weapons, etc.)
- ESG Investing: Integrating Environmental, Social and Governance (ESG) factors into traditional investment processes to improve a portfolio’s long-term risk/return profile.
Impact investing goes beyond sustainable investing as the primary intent with this strategy is to generate measurable positive environmental and social impact. Learn more about how we measure impact here.