Sustainable investing, also known as responsible investing or socially responsible investing, is an investment strategy that aims to generate financial returns while making a positive impact on the environment, society, and corporate governance. This approach considers environmental, social, and governance (ESG) factors when evaluating investment opportunities.

Sustainable investing has gained significant traction in recent years as more investors recognize the importance of aligning their portfolios with their values. By incorporating ESG criteria into their decision-making process, investors can focus on companies that prioritize sustainability, social justice, and good governance. This not only helps promote positive change but also allows investors to contribute to the transition towards a more sustainable and equitable global economy.

Investing sustainably does not mean sacrificing returns. In fact, numerous studies have shown that companies with strong ESG credentials tend to outperform their peers in the long run. This is because companies that effectively manage ESG risks and opportunities are better positioned to mitigate financial risks, attract and retain top talent, and access new markets and business opportunities. Sustainable investing therefore offers the potential to achieve financial goals while driving positive societal and environmental change.