Sustainable investing, also known as socially responsible investing (SRI) or environmental, social, and governance (ESG) investing, has gained significant traction in recent years. This approach involves considering not only financial returns but also the environmental and social impact of investment decisions.
One example of sustainable investing is the integration of ESG factors into investment analysis and decision-making. Companies that demonstrate strong ESG practices may be favored by sustainable investors. For instance, a company with a commitment to reducing its carbon footprint or promoting diversity and inclusion may be more attractive to sustainable investors.
Furthermore, sustainable investing encompasses various strategies, such as impact investing, which focuses on generating positive social or environmental impact alongside financial returns. Impact investments may target areas like renewable energy, affordable housing, or healthcare access in underserved communities.
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