The Impact of Sustainable Investment Strategies

Abstract

Sustainable, responsible, and impact investing (the new SRI) offers a dynamic approach to investing in this rapidly growing area. This type of investing involves a positive, proactive, and comprehensive review of a company to provide for a robust picture of a company’s operations and social, as well as economic, impact. Factors considered for this type of investing generally fall into the categories of environmental, social, and corporate governance (ESG). Through impact investing, investors will look to invest in companies, or investment strategies, that combine both social and financial returns. In other words, investors now want their conscience and wallets to both feel good about the companies that they are investing in through their stock portfolios. The impact that sustainable investment strategies will have on the global investment industry will increase significantly in the years to come.

TOPICS: ESG investing, analysis of individual factors/risk premia