Sustainable & Responsible Investing – Strategies

ESG investing - comprising sustainable, responsible, and impact investing - is any investment strategy that goes beyond simple financial considerations to incorporate environmental, social, and governance (ESG) factors. Sustainable investing and responsible investing are both very similar and so are often used interchangeably with each other as well as with ESG investing. Impact investing is a more extreme form of ESG and so would rarely be used interchangeably with ESG investing.

Today, a growing number of investors are seeking to pursue investing strategies that incorporate ESG into the decision-making process. Investors may select from various strategies, including ESG integration, active ownership, negative or exclusionary screening, norms-based screening, positive and best-in-class screening, thematic investing, and impact investing. This tutorial defines these strategies and discusses their selection and implementation.