INVESTING
• Green investing
• Socially responsible investing
• Value-based investing
• Conscious investing
• Impact investing
• Ethical investing
• Environmental, social and governance (ESG) investing
Roman Semiokhin
However, each of these approaches is distinct, with key differences between their objectives. Before committing money, investors need to gain a firm grasp of how sustainable investment is measured, gauging whether it aligns with their objectives and financial goals. Modern investors look at more than just the bottom line. Today’s investors are increasingly backing businesses operating robust ESG policies, paying attention to their impact on the environment and favouring enterprises that take action to help counter climate change by improving their waste management and energy
efficiency. In addition, investors may also look at how a company supports its customers, employees and the wider community, looking at its policies on data security, health and safety, gender equality, human rights and consumer privacy.
In an increasingly socially and environmentally conscious society, more and more investors are putting their money into sustainable investments. ESG issues can have a significant impact on share prices, potentially increasing or decreasing the resilience of investments and their potential to deliver long-term capital growth.
ROMAN SEMIOKHIN
To learn more about sustainable investing and ESG, visit the blog of Roman Semiokhin.
