What is sustainable investing and how does it differ from traditional investing?

Sustainable investing, also known as socially responsible investing (SRI), is an investment approach that considers environmental, social, and governance (ESG) factors, alongside financial factors, in the investment decisionmaking process. The goal of sustainable investing is to generate longterm financial returns while also having a positive impact on society and the environment.

In contrast, traditional investing focuses solely on financial returns and does not typically consider ESG factors in the investment decisionmaking process. Traditional investors may prioritize financial performance over sustainability or social responsibility.

Sustainable investing is a growing trend as investors increasingly seek to align their investments with their values and beliefs.