What is sustainable investing?

Sustainable investing, also known as socially responsible investing (SRI), ethical investing, or impact investing, is a type of investing that seeks to generate both financial returns and positive social or environmental impact. It involves investing in companies that are committed to sustainable and responsible business practices, and often involves considering factors such as a company's environmental impact, social responsibility, and governance (ESG) practices.

Sustainable investing can take different forms, such as investing in companies that are focused on renewable energy, clean technology, or sustainable agriculture, or investing in funds that have a mandate to consider ESG factors when making investment decisions. The goal of sustainable investing is to generate both financial and nonfinancial returns, such as reducing carbon emissions or promoting social justice, while still achieving financial goals.