What are the key principles of sustainable investing and what are its goals?
Curious about sustainable investing
The key principles of sustainable investing, also known as socially responsible investing (SRI), are to generate financial returns while also having a positive social and environmental impact. This is achieved by investing in companies that are considered to be socially responsible or sustainable, based on certain criteria such as their impact on the environment, their treatment of employees, their business practices, and their governance structure.
The goals of sustainable investing are to align an investor's values and beliefs with their investment portfolio, to promote positive social and environmental change through investment, and to generate longterm financial returns that are sustainable over time. This is accomplished through a variety of strategies, including investing in companies that are leaders in sustainability, engaging with companies to encourage positive change, and divesting from companies that have a negative impact on society or the environment.
Overall, the principles of sustainable investing are based on the belief that investing in companies that prioritize sustainability and social responsibility will ultimately lead to better longterm financial performance, as well as a more sustainable and equitable future for all.