Sustainable investing

At the basic level, Sustainable Investing is an approach to investment where environmental, social and governance (ESG) factors, in combination with traditional financial considerations, guide the selection and management of investments. This can be thought of as ESG integration to the investment process. This input focuses on the risks & opportunities ESG factors may bring when assessing a potential investment.

In addition to ESG integration, investors may look for investments that seek to achieve a positive environmental or social outcome. This can be thought of as sustainable outcomes as an output of the investment process.

This all comes under the broad banner of ‘sustainable investing’.